If there are issues in the background why does the Venture Capitalist reckon they can make money on this? I wonder if SEH management have given up and decided it's just "all too hard" - LXG negotiations ongoing, SJB money not received yet. Remember the board have unanimously agreed to this which means around 40mill+ shares are involved. They obviously have an interest in getting the best price possible for their shares.
Something smells and with a $4.5mill break fee, the bidder has put a serious roadblock in the way. SEH management have obviously known about this for quite awhile.
If there is nothing smelly about the SEH story, 35c seems like a fair takeover bid atm, however, if there are "problems" I guess 25c is a fair price.
I'm a little disappointed that it's not trading over 25c atm. It doesn't show a whole lot of confidence by the institutions, fund managers, brokers, etc. It will be interesting to see what their advice is over the coming weeks.
