Are the directors seriously positing that the pathetic offer by GMD must be accepted because we now have another piece of disgusting management evidence (like the mooted breach of the debt covenants if the GMD offer isn't accepted)??? Are they trying to suggest accepting an undervalued bid is good (insert- because it allows the white wash of the mismanagement), because accepting GMD's bid involves accepting a pathetic amount of much needed cash (insert- to absolve the mismanagement created issues)?
It is the height of intellectual bankruptcy to tell shareholders that they ought to accept the undervalued bid because they can't do better for the owners. One can easily imagine the management bleating, 'we cant breach the no shop, no talk condition'. If they rely on that condition to justify/rationalise the GMD bid, one can add the decision to allow the condition's inclusion as another piece of damning evidence. Management are trying to shame/scare owners into believing that a failure to proceed with GMD offer will be worse for them.
All this vile episode in corporate action proves is that management can destroy a good business. Plenty of gold is in the ground, the failure to extract it in an efficient and cost effective way proves the owners have been let down. Is it lost on anyone that management's failure to act earlier to protect the owners' interests has the company now running to Wile E. Coyote so he can draw a tunnel entrance on a sheet to hang on a rock face?
SBM Price at posting:
53.5¢ Sentiment: Hold Disclosure: Held
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