The minimum bid price rule is that a person (including associates) cannot make a take-over bid at less than price THEY have paid in last 4 months. On my read, though somewhat illogical, this includes new shares subscribed in a CR, so Gina can probably bid $3+ today, $1.80+ from Monday and even lower from around 20/2 (estimated 4 months from CR).
Btw, I raised the prospect above of Gina making a full on-market take-over and getting a broker to stand in the market immediately, to hoover up weak hands. This was really in response to some confusion that she might need to wait for 3% creep rights, or gain Board approval.
This would be an immediate way for Gina to swoop, and increase her stake. It would require the theoretical capacity to buy unconditionally and fund all outstanding shares, which Gina (with few equals) could satisfy. Those old enough will recall the Harlin Elders offers- they were not designed to actually win total victory, but rather to swoop (only) on an available stake.
I was not of course suggesting that any such opportunistic bid from Gina would win other than the weak hands then available, having been frightened sub 90 cents. I would not sell personally, under $3, and as others have speculated, there may only be 5-10% available.
The huge volumes of shorters needing to simultaneously close out their exposure may well complicate any such swoop.
My money still says Rio should try to hoover those shares available under $2, and then have a coffee with Gina.
Interesting times.
LTR Price at posting:
$1.12 Sentiment: Buy Disclosure: Held
(20min delay)
