Has anyone entertained the possibility of the Medina HOA having been called off? Under the circumstances, and given current market conditions, this is a strong possibility.
Of course, directors aren't obliged to inform the market until the decision to enter LEGALLY BINDING arrangements or OTHERWISE is confirmed... i.e. at the very last minute. Does anybody follow RAU?
Say that the deal falls through or is, on the balance of probabilities, looking like failing what then? Likely a reactionary sell-off and a corresponding drop in price and, ergo, market capitalisation.
If Sentry and/or Medina is so cashed-up then why go through the pretence and legal hassles of the JV when the company is potentially there for the taking on weakness?
Of course this sort of behaviour is frowned upon in 'polite circles' but in the business of acquisition there is little observance of etiquette.
Stepping back from the above, and assuming a less painful scenario, what motive is there for Medina or Sentry to sign the dotted line at this stage anyway?
Why not let MHL whither on the vine so to speak and strike a better deal against a party in a significantly weakened negotiating position? Medina would certainly be keeping its powder dry right now...
Just my thoughts to reflect commercial reality.
MHL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
