Personally I think BGA will do nothing before this Friday because they know that if they don't accept Saputo will either have to extend the offer or admit defeat and walkaway with probably under 30%.
Worst case is BGA will be left holding the shares if the MG bid does not get approval and a good chance that someone will be willing to buy them at a higher price in the future.
How many of the prior acceptances for the Saputo offer have been pulled, no one besides Saputo know their true holding, it could have dropped.
One thing that many people have not considered is where acceptance leaves BGA. With only about 87 mill net debt and current growth projects funded from operating cash flows the money from the acceptance has to be utilised.
Do they reduce debt o hold the money both will make them a greater takeover target, return money to shareholders via dividends or capital returns or try and buy something else?
One of the key aims of the BGA and many shareholders is to ensure that they are not taken over, this is probably inevitable but I am sure they are considering the affect of accepting Saputo.
Many people expected the BGA share price to drop dramatically after they closed their bid, this has not been the case, why, because people now have come to realise that the WCB takeover is now a side show and that the growth in the industry is looking pretty good.
The board is smart have been doing a great job and have shareholder backing so they will do the right thing.
WCB Price at posting:
$9.22 Sentiment: Sell Disclosure: Not Held
