I think there is potential for other offers and there is a clear means of doing so. The Deed has provisions that allow this to happen and there is no firm offer on the table yet.
Another party can provide an indicative offer at anytime based on information in the public domain with no obligation. Consider that Allegro has no obligation to make firm offer and can withdraw at anytime so any indicative offer from a credible party that is superior must be considered by the BOD. Not sure why BOD have provided exclusivity arrangement where there is no obligation or exit fee to Allegro but they have.
BOD can choose to terminate the exclusivity agreement and provide another party due diligence material by paying Allegro's costs of up to $350K up until a firm offer is made or up to $700K once firm offer is made.
The other out the BOD has is the independent expert's report recommending the deal is not in the best interests of shareholders. I don't see it as a particularly good deal but it depends on the expert - a has been drip under pressure Never seen a report not back-up the BOD's intention to recommend the deal in SIA's but who knows?
Further to this the market is clearly indicating that the offer is too low which is gratifying. I will be holding to see what transpires with a great deal of interest.
stoneral33, I have a question for you, what is your interest in Capral?
CAA Price at posting:
$7.51 Sentiment: Hold Disclosure: Held
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Never seen a report not back-up the BOD's intention to recommend the deal in SIA's but who knows?
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