Kevin Andrusiak | June 12, 2008 THE dream is dead (for Fairstar), long live the dream.
What more can be said about Fairstar belatedly deciding to end its long-running, aggressive, drama-filled bid for Golden West?
To be honest, Fairstar got close enough to send more than a few chills down the spines of the Golden West faithful.
Ultimately, Golden West was just too big a morsel for Fairstar which was short on assets, and just as short on cash and financial back-up given Findlays washed its hands of the deal long ago.
The often-rumoured addition of some extra cash to Fairstar's all-scrip bid never materialised.
Neither did the other rumour of bringing in a partner to the deal which had the speculators suggesting China was going to back Fairstar to the hilt.
But there is something new to add to what has been a fascinating saga...Fairstar seems to have been let down by another financier of questionable note.
You see, Fairstar should have ended up with 24.6 per cent of Golden West but instead its stake now stands at 22.9 per cent.
Actually, scratch that, Fairstar should have ended up with 33 per cent, but its exposure to Opes Prime - when it pledged the shares in return for a loan - cut it back to the mid-20s.
Fairstar now notes that a further 1.7 per cent, or about 187,000 Golden West shares, have gone missing because they were pledged by a “financier” who has yet to return them.
But Fairstar isn't panicking - yet. The shares should be back in their hot little hands within 30 days, according to Kevin Robertson.
The wash up is that Fairstar ends up being the biggest shareholder in Golden West and should be able to retain some sort of a say in Golden West's future and more importantly, its Wiluna West iron ore deposit.
The gossip doing the rounds is that Golden West boss Con Markopoulos was in China, probably doing what iron ore miners do best when they venture to the Orient.
How long Fairstar can keep hold of the shares, or wants to keep hold of them, is another matter.
Now that the bid is dead, Fairstar can do with the shares what it will and that might mean cashing in a few of them to continue on with its dream to become a diversified miner.
Or it might even want to bankroll a new takeover of some description.
As for those Golden West shareholders who accepted the bid, Daily Assay sincerely hopes the acceptance form came with a “Buyer Beware” stamp.
Those who chose to accept and hitch their wagon with the Fairstar convoy are now down more than a few quid.
They know that, Fairstar knows that, and the market knows that.
“Fairstar thanks all Golden West shareholders who accepted the takeover offer and is confident that shareholders will continue to benefit from Fairstar's interest in Wiluna West and from the diversity offered by Fairstar's own exploration projects,” Robertson said in his statement to shareholders.
If Robertson and his board of directors thought the pressure was turned up high during Fairstar's ill-fated Golden West bid, the gauge is on red alert now that his new band of Fairstar shareholders want to get something back for choosing them over Golden West.
FAS Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
