This is the 1st time I’ve held stock in a company courted for a T/O. I’ve been thinking about ramifications for the share price in coming months. I’m interested in your thoughts.
The facts:
* Sandfire has offered MOD shareholders 45c p/s * Record Date is mid-October * The T/O is likely to be accepted by MOD shareholders (in the absence of a superior proposal)
My conclusions:
* MOD's share price is unlikely to fall much below 45 p/s prior to the Record Date * If MOD's share price does fall much below 45 p/s, it's probably because the deal is perceived as less certain (rather than because of a fall in commodity prices) * If MOD's share price increases beyond 45 p/s, it'll probably be due to interest received from other suitors
MOD Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
