See my commenst back on 2/2/2015 the offer is very low , if the directors previousley valued REC at A$11.00 .Why accept such a low offer?
Since the announcenmment of the agreed offer; Iron Mountain Share have fallen significately, the offer of 0.1722 Iron Mountain shares for one [1] REC shares needs to be bulked up to take account for the share slide of Iron Mountain.
The offer of $8.50 cash will no doubt results is a scale back as Irom Mountain have capped the amount of cash for the buyback of shares and it will no doubt result in shareholders with 5000 shares or less being scalled back and being left with a small number of Iron MountaiShares.
The large shareholders will split their parcels in to lots of 5000 shares which will further distrort the cash component of the takeover offer.
It is a poorly thought offer and REC Directors must go gack to Iron Mountain and re - negotiate the terms of the take over. If REC shareholders want to take cash for their shareholding they should accept a discount to the offer of Iron Mountain shares. It is not over yet and it may be voted down anyway!
REC Price at posting:
$7.30 Sentiment: Hold Disclosure: Held
