"expectation of a superior bid" – Having had a quick look at the deed, I would be inclined to use the more technical term of "forlorn dream" rather than "expectation" here. The board is not allowed to solicit any competing bids either directly or indirectly. If any unsolicited competing bid emerges the board is forbidden to provide the competing bidder with any private or confidential information. That means no "open book due diligence". No responsible entity is going to stump up the money for a takeover without checking under the hood.
In my view:
The only possible source of a higher bid is if the board's outbound market research indicates a significant risk that the shareholders may vote the proposal down.
That seems unlikely because holders seem to be bolting for the door with around 40 million shares traded today.
The new holders will be arbitrage traders with a strong interest in seeing the deal go through so they can get their 0.1c per share.
CNW Price at posting:
5.4¢ Sentiment: None Disclosure: Not Held
