The resubmitting of Yanzhou's bid for Felix Resources with no material changes seems as if there may be something in there that's not been spotted yet.
Yanzhou's low unsatisfactory bid has dividend flaws in it. Those who reject the bid still get the $1.00 dividend.
If the bid falls apart after the 50c (cost $98.2 million) first extra dividend is paid then it will leave Felix Resources with a tight cash flow situation.
The whole bid looks to be one that everyone should reject (Felix directors are committed to the bid unless a superior bid arrives on the scene) as the company is better off without a bid at this low level.
Why have the directors advised acceptance of such a low offer? Maybe they hope a higher one will turn up - a dangerous game to play with OUR assets.
The resubmitting of Yanzhou's bid for Felix Resources with no...
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