The reasons for ERM's buy-in to MEL is probably two-fold - hedge and leverage.
I don't think its a hedge against gas prices - their obviously sophisticated players in Australia's domestic gas markets.
ERM needs gas for Wellington. I think they may also hold the view that MEL is under-valued by the market.
Hedge - In the event they strike a GSA with MEL only to be gazumped if MEL is taken over, the loss of a potential supply is mitigated by a financial profit on their share investment.
Leverage & Hedge - leverage in the event MEL receives a take-over offer. The predator will not be able to ignore ERM as a substantial shareholder and provides ERM with potentail to negotiate a GSA with the predator.
Good move by ERM. Good for MEL. You can bet if ERM can't get a GSA they'll bargain hard on the take-over price.
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Last
0.4¢ |
Change
0.000(0.00%) |
Mkt cap ! $5.830M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 2105211 | 0.4¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
0.5¢ | 3778476 | 8 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 2105211 | 0.004 |
13 | 25157992 | 0.003 |
11 | 23270899 | 0.002 |
10 | 64636865 | 0.001 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
---|---|---|
0.005 | 3778476 | 8 |
0.006 | 1458000 | 2 |
0.007 | 100002 | 1 |
0.009 | 80000 | 1 |
0.010 | 1000000 | 1 |
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