be very wary of an increase in share price, page-2

  1. 11 Posts.
    Maybe, but the hedge fund coming in would have to disclose if they were acting in concert with another party and would not be commercially rewarded for buying in at or above the offer price.

    If management is buying in the market i'm pretty sure that takeover rules would require them to increase their offer to the highest price that they pay. They would however also have to disclose this under ASX rule as a change in shareholding as they hold a stake above 5%.

    With Australian advisors - including lawyers and Citigroup-they should be appraised of the rules.

    My money would be this being a hedge fund moving for a short term return, getting a quasi blocking stake and wagering on the opening offer not being final or on getting it up in some manner. I can't see that anyone has said/declared the offer is final. A 10% unlevered return in 3 months - is ok for a hedge fund.

    Lets see how this plays out.
 
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