Why did the Board execute a no-talk clause preventing them from courting other potential bidders?
How can you form a view as to market value of the stock, which is not equal to NPV, market value includes takeover, control and strategic premiums which are substantial these days, without discovering buyer price appetite in a competitive environment?
If the Board is of the view that it is in the best interets of shareholders to realise value through a takeover, and they are of the view that $2.50 is fair, they should treat that as a minimum price and seek to initiate a competitive process.
Did they do this pre-Xstrata deal? Did I miss it?
Its pretty obvious they cut the deal without reference to major shareholders, else those shareholders would have accepted.
Shareholders should consider calling a General Meeting and reconstituting this Board should the Xstrata takeover fail.
SPH Price at posting:
$2.48 Sentiment: Hold Disclosure: Held
