JBM bought shares from thr FCN directors (22 million giving them 16% and 2 seats on the FCN board). The price was 50 cents in cash plus 0.1389 JBM share per FCN share. At the time the JBM share price was around $4.70 - so they paid equivalent to $1.15 per FCN share. So now that JBM is around $5.80 they are getting the equivalent of $1.30. In other words they took an educated guess that JBM would rise (and if JBM takes over FCN and Collurabbie comes up trumps they WILL rise significantly) - and so far so good.
If JBM move on FCN they would have to offer the same deal so we would be offered the equivalent of $1.30. If you were JBM and thinking of a takeover you would do what you could to get your own share price up so that the deal looks more attractive- no?? Could help explain today's moves - but so could a takeover play by WMC for JBM.
H
H
RBO Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
