I don't, and had always assumed they were compensation for cost, hassle and distraction of bidding, effectively ensuring that the bidder will not be worse off if the bid fails.
This C305 mm break fee to Xstrata imo must far exceeds anything justified in such manner. There is no way I can look at a fee of A$1.37 ps as in shareholders interests, and effectively means that LIM is worth A$1.37 ps less to both Norilsk AND for Xstrata.
I am very much hoping Norilsk, or big shareholders can get the legality of this challenged.
Does the ASX have a policy on breakfees?
EL
LIM Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
