tinkler and eoc, page-14

Sharejon,

Good post. I agree, except for the fact that EOC have opened up their dataroom to potential purchasers. That is not the action of a company that is 100% committed to proceeding as is. They could've said, thanks for the offer, but no thanks. But they didn't.

Every takeover target always comes out with the same old line about being excited about the future, looking forward to their growth in the next 12 months etc...etc... If I had a dollar for every time a company said this, and 5 minutes later they announce to their shareholders "we are recommending an offer of x". The instances are just too numerous, so I won't bore you with them.

But that claim of being committed to further growth is simply part of keeping a strong bargaining position. They can hardly say to the market, "we are definitely for sale, and have no reserve price and no intention of going it alone". So instead it is business as usual, whilst they open up their data room to buyers.

And so the capital raising gives them the ability to fund their next 12 months, if talks fall through. It gives them options. But, imo, it isn't evidence of their commitment to independence.

The talks may come to nothing. EOC may remain independent, possibly for years to come. EOC are for sale, if the price is right. And if it isn't, they won't sell.

IMO, this is all part of the cut and thrust of negotiation. But EOC's data room is firmly OPEN.

Yaq


EVERYONE HAS THEIR PRICE. Remember that old interchange between Churchill and Lady Astor:
Churchill:"Would you sleep with me for a million pounds?"
Lady Astor: ""A million pounds? I’d have to think about it first but, in all likelihood, yes."
Churchill: "How about for a six-pence?"
Lady Astor: "Why I never! "What do you take me for?"
Churchill:: ""That, my dear," says Sir Winston, "has been established. We are just negotiating price."