I am an SFR shareholder and I am not that enthusiastic about the...

I am an SFR shareholder and I am not that enthusiastic about the deal.

It is Credit Suisse's view that the acquisition presents a dilution risk, estimating the deal may be 30% dilutive to shareholders.

I hate these types of deals where the new investors coming on board effectively have their aquisition cost subsidised via a dilution in the share price for existing holders. Yes, I know - at least this deal gives retail shareholders the chance to participate in the new issue (it could have been worse in that regard) but I do not really want to double my exposure into SFR but may be forced to do so short term to try and cut some of my losses.

I am also not enthusiastic about the acquisition target - I would frankly prefer to own a mine in Africa than In Europe, the price is not cheap and the sellers are experienced players which makes me wonder why they are sellers in the first place. This smacks of one of those deals that when the next down turn comes we look back on it and conclude that the buyer bought near top of the cycle, at a high price, in a place with very high regulatory and cultural risk. Hopefully in the short term I am wrong and I can at least get out with a more modest loss on my existing holding than what I am anticipating right now. I at least made some good profits on the market dip generally this week (on other stocks) but as usual in the share market - God giveth and God taketh away

Cheers
P