As a long time suffering shareholder of this company (when it was a lousy media company 12 years ago)I'm not particularly happy with this takeover either considering the potential this company could become. With the copper price expected to strengthen,demand expected to exceed supply and the company a year from production, I agree with Papertigger that this deal is a dud deal.I also love the fact that labour and diesal are cheap in Saudi Arabia and the tax rate is only 20%. I have no doubt this takeover derisks the company , but I was after a big risk/big reward play (with the risk diminishing imo). Another problem I have with this deal is that some analysts believe EQN scrip is overvalued (apparently the rise in EQN to $6.20 yesterday was on rumours it may be subject to a takeover itself from Quantum Fund)so if the EQN share price starts falling there won't be much of a premium. I have yet to make a decision as to what to do but I really need some convincing that this is a good deal!
CGG Price at posting:
49.5¢ Sentiment: Hold Disclosure: Held
