I have to reject all the theories that Merrill Lynch Funds Management and others are stalking horses for Tullow. The law deals, and has dealt very severely with those sorts of breaches of the corporations act.
Merrill Lynch is protecting its client's positions by trying to get the best price they can for Tullow. I believe at it is Merrill Lynch Funds Management that is the shareholder, presumably investing for clients - and will be a totally separate part (Chinese walls etc etc) that is now advising Tullow.
Merrill Lynch Funds Management will go wherever the money is - and that may not be Tullow. However, it is in ML broad interest to stimulate a bid for Hardman to raise the share price, they are advising Tullow, but would hardly be blind to their own self interest.
I assume that Hot Copper fanatics like me own up to 10% and would vote against Tullow. If we assume a massive 80% vote at the EGM, we only need 21% of shares to vote no - i.e. another 11% on top of the Hot Copper faithful - to defeat Tullow. I certainly believe that the positions being accumulated are available for that purpose if events are dealt and managed properly. No position will be wedded to Tullow - they will follow the money and the potential upside.
The Tullow bid has definitely put a floor of value under Hardman. If they were to be defeated, the market may “punish” Hardman, but the memory of a real bid at $2.02 will keep the share price buoyant from here.
Tullow is in the best position to know the Hardman assts in Uganda - and it has voted with its cheque book to broadcast the value of those assets.
If Tullow is defeated, I would hope that Potter and the Chairman from the Woodside accounts department resign.
HDR
hardman resources limited
