"$336m Raised from Institutions at $1.50 per share!"
This was the much cheered GNS announcement on 4/9/2008 almost exactly a year ago to fund its $350m acquisition of Auspine.
Still remember what happened later?
If you were here long enough, you would know - the GNS share price was just falling and falling and soon broke through the $1.50 mark. The following retailers' cap raising was a complete failure (only fools would accept the offer!).
As an direct consequence, GNS had to sold its immature trees for $175m to cover the debt. GNS also lost 1/2 of its pulp mill since banks insisted that GNS had to find a 50:50 JV partner.
Later I noticed GNS never mentioned that "$336m" number again and it was changed quietly and deceitfully to something under $300m at a small corner of a lengthy announcement months later.
One year has passed. What's happening now is again "$115m Raised from Institutions at $0.90 per share" to acquire ITC!
Won't history repeat itself?
Or is it already repeating?
Watch out!
GNS Price at posting:
99.5¢ Sentiment: Sell Disclosure: Not Held
