Unless current buyers at 36 believe a higher bid is likely,Improved consideration from Ramelius is a possibility but a new bidder....most unlikely.Over 170million shares in Musgrave have traded since the opening of the Westgold spoiler bid. That's approaching 30% of MGv's issued capital. Most of the buying is going into arbitrage traders who have taken the position that:1. the Ramelius will go unconditional thereby ensuring, at that time, that they can convert their MGV position into RMS shares and2. having access to RMS insto shareholders ( and there are plenty) who will lend to them - for a short period- their RMS shares they, the arb traders, short sell their borrowed RMS shares at a price which locks in an arb gain of 6 to 8 cents per RMS share. This strategy worked a treat in the BRB takeover and with likely 20% + of the MGV stock in arb traders hands it is they - the arb traders- who will likely push Ramelius over the 50% threshold.Can Ramelius perfect another BRB at MGV and get to compulsory acquisition? It's possible. Disclosure: Nil MGV but plenty of RMS.
MGV Price at posting:
35.0¢ Sentiment: None Disclosure: Not Held
