They can't pay more than the offer for four months, without having to compensate all those who accepted the first TO.
They can launch another TO after 4 months, but the threshold for compulsory acquisition is 90%, as before but also 75% of remaining shares. So they would need Kin/Delphi's 10% plus another 5%. My guess is Kin Delphi would want something like 50 cents. They definitely won't want GMD or Hoover shares.
I am not sure if alternatively they could buy out Kin Delphi after 4 months without being required to make an offer for the other 10%. But supposing that happened, they would have to eventually make a TO offer the last 10% and they would have to get to 97.5% before compulsory acquisition. Your guess is as good as mine as what they would have to pay to get to there, but my guess is over $1.
It will be interesting to see how few shares this final bit of bluster shakes loose. My guess is the remaining DCN shares are pretty firmly grasped.
I bought DCN as a bet that GMD need to own DCN and will have to pay a lot more in the next round. I can wait .
DCN Price at posting:
10.5¢ Sentiment: Hold Disclosure: Held
