Even the announcement heading is like it is a fait de accompli "Adriatic to be Acquired by Dundee Precious Metals". This is not an accident and it speaks volumes about the Adriatic management!
It is NOT a done deal and shareholders must reject this paltry well orchestrated scheme to steal a very valuable asset. The upside of Adriatic over the coming years is nothing short of huge as we will see silver break out, the USD debased, base metals rise, commercial production expanded, exploration potential come to fruition and Antimony value realised.
This seems to be the old playbook;
- Have large holdings in the company purchased over a short to medium term period by trusted entities (They buy on the cheap and are awarded by the takeover price and respond in kind by supporting the TO, thus providing the suitor with a large holding in the company at announcement of terms)
- These entities also manipulate the share price down or at the very least keep it at a low level so the suitor can announce a fake premium to the VWAP.
- Get management of the TO target on side by whatever means possible (for eg job offers, pay out of performance shares etc) so that they agree to the offer and support the TO.
- Pump up the suitors own SP over the months prior to the TO so that any shares offered as part of the deal have an inflated value, further striping away the value to the TO target.
Subsequently, as in this situation Dundee already have a significant holding in the company at 37% thanks to their mates, their mates are rewarded by the percentage increase in the value of their share purchase prices from the TO offer, management act with self interest and throw shareholders under the bus and Dundee tells us what a great premium they are offering and how wonderful it will be for shareholders being apart of the combined group! It is a load of bollocks, us shareholders are being right royally screwed here.
Personally I feel that this takeover should be investigated by the relevant authorities.
We must reject this offer and vote NO. We should also seek to remove management and the Board as they do not act in the interest of shareholders.
ADT Price at posting:
$5.00 Sentiment: Buy Disclosure: Held
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