More comments from the chairman over the weekend, seems very sound and positive:
http://www.theaustralian.com.au/bus...rs-a-better-deal/story-fn91v9q3-1227416977878
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...Speaking to The Weekend Australian, Mr Greiner said the Sigdo Koppers-Champ consortium was “well aware” Bradken would expect a deal that is higher than the $2.50 per share offer.
“If control passes, we want a control premium and shareholders should expect a control premium,” Mr Greiner said.
Bradken shares have traded consistently below $2.50 a share in recent months, falling as low as $1.455 yesterday before closing 11.3 per cent lower at $1.525.
Mr Greiner said he had no regrets about rebuffing April’s private equity bid.
“We don’t think $2.50 represents anywhere near appropriate value for the strategic platform, for the fact that we’ve done the work of restructuring the company but haven’t yet got the benefits of the restructuring. And we don’t think it reflects the sum of the parts valuation, not that we’re contemplating a breakup,” he said.
“I think the board and the shareholders are on the same page, which is that in this discussion with [Sigdo Koppers] we’re looking for an outcome that represents a clearly higher value for the shareholders.”
Bligh Capital fund manager Shane Bannan said Bradken had taken a “pretty conservative” approach with its balance sheet.
“It’s a fairly uncertain world out there and no-one is sure just what is going to transpire, so I would have thought they’ve cut themselves enough slack by setting the covenants as they now have,” he said. “But the injection of the $70m gives them just that much more headway again to deal with what might be.”
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I would like what shorters comment on this, particularly on Monday before the market start.
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