In the case of AZZ the top 20 shareholders own more than 50% of the company.
The top 20 will know the value AZZ is sitting on. Many have been with the company for a long time, and AZZ is now at the start of some big wealth creation.
The way I see it, unless the company is in financial trouble or requires substantial dilution I can not see them accepting a low ball offer.
2011 is when I expect to see AZZ is self funding off production. Uncertainty around funding and acreage profitability would be removed. Until then shareholders may have to live with the uncertainty of capital raisings which I feel may put a cap on AZZ in these now uncertain times.
A bid for $1 would be nice however, it would definitely put a floor on the share price like it has done for ADI, and wake the market up to the co's future potential.
AZZ Price at posting:
56.5¢ Sentiment: LT Buy Disclosure: Held
