Tony had always stated that he would conduct a buyback after the sale of Marampa. Don't get me wrong i want them to start buying back stock now also but I think the announcement of the buyback was an ace in Tony's stack of Cards. The rumors in the industry at the moment and i state these are only rumors is that The ruler has been run over the CFE stable of assets by a few highflying fat-cats. And why wouldn't they if i had a cheeky $700m lying around i'd takeover CFE.
I think you'll find CFE will just sit in the background and let the share-price run it's natural course. I think you'll find the buyback has been initiated mainly to take out any cappers if they deem a reason to dump a couple million shares on the sell side. Or if someone makes a lowball offer they can start buying back stock as a defense mechanism to increase large holders control and therefore control the price. In Merger an Acquisition terms it is a good version of what is otherwise known as a poison pill. except instead of diluting shareholdings they are reducing shares and can bid the buyer up.
Again i State this is only rumors i have heard, it is in no means the truth. It does make some sense though as to why tony suddenly changed his stance on the buy back arrangements.
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