Over the years I have been disappointed with recommended takeover figures that have been provided by 'advisors'. A number have recommended what I had considered to be conservative figures so that when Directors state this is the recommended takeover figure and the takeover has proceeded the advisors can crow that they assessed the right value (without allowing for fututre potential).
In another case I experienced a Board accepting a bid purely on the basis that it was the best bid on offer. Why would you accept any bid just on that basis if the company is trading well?
In the case of NWE I will be interested to see what figure Euroz Hartley predict as fair value. Will it be on the value of NWE purely on what is known today, prior to drilling of the next 2 wells, because that is todays value, or can they include reference to predictions that MIN and NWE have commented in public?
Can the Board state that they will not consider any takeover offers until afer drilling of these 2 wells or do they put themselves at legal risk of action against them if one or both wells are fizzers?
Does anyone know the history of Euroz Hartley in relation to takover valuation figures with other companies?
DYOR
NWE Price at posting:
5.9¢ Sentiment: Hold Disclosure: Held
