Market cap of this company is now under one year's revenue or around $300m. A checeky offer of double this i.e. 70c per share might just get over the line as the banks will put huge pressure on management to accept anything that improves their situation.
Anyone wanting to pick up these assets will not want this company to go into administration as once in the hands of administrators it becomes a bun fight. A clean buy of the entire operation for $600-700M to pick up net assets of over 2bln will be very attractive right now as the s/p is so depressed that allows a predator to low ball the market & instead of paying $1 plus as they probabaly thought they would have to pay to get a deal over the line, they can probably pay 30% less. The shorts may have played into the hands of a takeover by depressing the s/p to rediculous levels & it will be them that get burnt in the crossfire!
CNP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
