a candidate for takeover, page-91

hi chakay,

You raise a valid point. Any bid would be based on an acceptable premium (control premium) of the target company. Rule of thumb let's say 40% to 3 month VWAP. that is USUALLY enough to get it over the line, and a very good starting point.... but will depend if a second bidder emerges.

As to NPV, of course the bidder will have done an NPV valuation, actually they would have also done a ENPV valuation (risked NPV). They will keep this to themselves, clearly to offer a premium they would have these valuations and clearly their offer will be well short of there expect ENPV, you never offer your knock out blow upfront.....why else would you bid basecon a ENPV unless there was a strategic reason to do so?

BHP maybe? Yep, but I don't think they need to.

Cheers, Tony.