A low ball offer, I can't imagine Brazil Farming accepting the offer they are under water even with their latest purchases @$0.62-0.63. I would have expected at least $ 0.85 and that is a steep discount to asset value.
CIMIC either want's to flush out another bidder at a higher price , which would seem to be the case as the market is bidding above the cash t/o over offer price .
The alternative is CIMIC to move to 75% and control the company break up DVN in a way suitable to CIMIC sell the good bits to CIMIC and retain the poor performing bits in DVN. It could distribute the residual shares in DVN to their shareholders The third option is to take DVN over at $0.85 and sell it off piece by piece. They may get $1.00 + which is not a bad investment.
DVN seems to have a management overload this offer may help force some of the management to move on quickly - that will increase the value of DVN
Interesting situation !
DVN Price at posting:
76.0¢ Sentiment: Buy Disclosure: Held
