Even if, a rival bid does not emerge, Hanlong will have to increase its offer to get the Sundance Board on side. IMO a sweetened offer will be on the cards to get an agreed bid. Hanlong is moving swiftly coinciding with Paul Biya's visit and they may have too much power and will try to steamroll the SDL Board. Question is, can Xstrata come up with anything by the weekend's end?
"The offer price is substantially under the 52 week high for Sundance shares of 66.5c reached in early January this year.
(BHP Billion offered a 40% premium for Petrohawk in its $US15 billion deal on Friday. That's a different country and different industry, but the principal is the same. Offer a bigger premium; get an agreed bid with the directors on board).
Sundance's board told shareholders signalled they wanted more by telling shareholders to take no action at this stage and suggested that a bit more on the offer price might see a greenlight.
"The terms of the offer do not provide adequate value of certainty to Sundance shareholders," the company said.
The statement said the board would discuss the terms of the proposal with Hanlong.
In other words, if Hanlong increases its offer, it becomes an agreed bid."
SDL Price at posting:
52.0¢ Sentiment: Hold Disclosure: Held
