asx on-market bids

here's something interesting.

Metrocoal Ltd (MTE) has just announced an On-market bid for Cape Alumina (CBX).

I have no shares in these coys.

what piqued my interest, is that the lawyers acting for MTE, and who are doing all of the ASX releases, is Hopgood Ganim of Brisbane.

Guess who acts for Landbridge???

Yep --- even the same Partner is acting for each of MTE and Landbridge, so plenty of experience and research/work done on takeovers one would imagine?

also confirmed was that MTE already held a parcel of 6.87% in CBX. So MTE launches on-market bid with 6.87%.

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help me here - bid release says price "0.6cents p/s".
sp of CBX is $0.02 ie 2 cents.
So imho, bid consideration is only $0.006 ???? ie less than SP???? I have not researched that yet. did I read it correctly?
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perceived relevance for WCL
warning - just my view, and speculating.

not sure if L/b has any shares in WCL?
but L/b approached WCL with price of 36c, and highly conditional proposal, which included d/d and Chinese govt approvals.
WCL would not engage.
So L/b went public.
Clearly, L/b would not get majority control without support of NHC and EIT, as those two have 30%.
and many of the Top20 would follow the recommendation of the WCL board.

But with an On-market bid, the Offeror must accept any shares sold to it under the Offer. the Offeror cannot put the shares back to the WCL s/h who sold them. thus if the Offeror is hoping for 50% of the shares, but he only gets say 20%, 30% whatever, he is stuck with them.

an on-market bid by its nature is unconditional- so if L/b or someone else were to go that route, would need to get all their govt and regulatory approvals in place beforehand.

we have lost 2 directors with 4% and 1%-2% - so one would think those s/h represent fertile ground for an acquirer.

whilst the market continues to discount the prospects of a GSA, WCL will be attractive to bargain hunters.

interesting stuff
cheers