Yes I'm aware of that condition. It maybe a given, but it may...

Yes I'm aware of that condition.

It maybe a given, but it may not be, as they have an awful lot of out of the money options which may be forgone in the event of a T/O.

So the board recommendation might depend on how sweet a deal they can wrangle for themselves above and beyond what theyre on now.

Spending 10 or 20m on the directors may be cheaper than 40-100m on paying proper market value.

The capital structure I was referring to was the 20% holding of etango that is not owned by BMN. They wanted to dispose a while back at $1+ prices as they were never going to be able to pony up 20% of 700m to develop the mine. I cant see them jumping at 60c if they have been waiting all these years.


Also the shares of a few major holders who have been around for ages will know the long term strategic value of the company and they wont be itching to dispose either I would think.

Without support of those sort of people I cant see a full buyout going ahead at these prices. Most of the current exec's dont actually hold all that many shares aside from Len, so their opinions may not carry too much sway.

There were provisions for a partial takeover written into the consitution a while back but I dont fully understand the implications of them.

You also need to remeber the provision for revision of the bid due to material adverse changes. If the greek situation worsens, they could throw out the 60c bid and put one in th 40's.

So I am working on the assumption that the offer as stated wont proceed for one reason or another, but that there will probably be some other arrangement arrived at (partial T/o, JV maybe... who knows). The question is how beneficial will it be?