PLS 1.04% $2.85 pilbara minerals limited

Crossing the line, page-60

  1. 8,740 Posts.
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    I would always be a little biased. However, when I consider AJM for PLS I don't see a fit or need from the PLS side.

    The biggest benefit for PLS would be to move to another company to avoid the GAM clause and get on with business. - why bother with a constant dealing with GAM when you can negotiate out of their agreement.

    I am sure I'll be corrected if I am wrong, but I don't think GAM could afford to buy out PLS.

    On the other hand the GMM & GXY has opened the door for an alternative method to be considered. - it would be the intrinsic value that takes place that would allow PLS to say they got a better offer than GAM could come to the table with so see you later first rights.

    That could potentially be very costly for GAM and they might fight back legally to do anything they can to keep that hold into PLS which might be addressed with a share offering to keep them happy and allow the parties to move forward.

    It also depends on the ego's in the company. - are they more focussed on themselves or the business and share holders.

    The only company that I can consider at this time would be worthwhile merging with would be Galaxy. But then it depends how Michael Fotios feels about that considering he is set to become the largest share holder in the 'new galaxy'

    Michael Fotios has strong mining experience and Anthony Tse provides a good inroad into China.

    I don't see ORE being interested and even if they were they don't have the experience with spodumene and tantalum.

    As for if it would become reality who knows, but I do like to speculate as do most of you here otherwise we wouldn't buy these stocks.

    A Galaxy Resources & Pilbara merger would make them possibly the largest lithium miner on the planet. @SuperNinja has done some background information on the larger companies so he would probably know better than most if that combination would exceed what is currently out there.

    It's just a thought, doesn't mean it will happen.

    The key message I would say is that GAM would be sh!tting themselves after seeing what GMM and GXY did whilst wondering if it could happen to PLS.

    It would be great to see Australian lithium stand united.
    Last edited by Thesi: 15/06/16
 
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