If the threshold for acceptance of a takeover is 75% (iirc), then the price at which a TO would be accepted is the HIGHEST price that those holding 75% of the shares is willing to accept. For example, if there was a TO offer for say $3 and the owners of 26% of the shares outstanding would not sell for less than $3.01, then it would not happen.
So, in asb’s dreamland of the share price dropping to 80c and a TO offer being made for a premium of say $1, all that that would be required for this not to be accepted would be holders of 26% of the shares to say no thanks, we want more than $1 ffs.
So, think for yourself...
If a TO came through for $2, would there be holders of 26% of the shares saying no thanks..?
If the fundamentals had actually gone downhill with the shareprice, then maybe people would jump at $2 but I don’t reckon they have and people had plenty of chance to cash in at $3 and $4 if they were happy with that price. Accept $2 just because the current price is lower? I doubt it. People have more foresight than that.
Food for thought.
Cheers
GXY Price at posting:
$1.30 Sentiment: Buy Disclosure: Held
