Wish I really knew game theory and negotiations but here goes...
If the government really felt they were in the right we would be offered near zero.
I suspect while making their offer the government knew that a bunch of shareholders would not be happy with the amount offered. The necessity of our approval vote was used by MEL management as part of the tactic to get a reasonable settlement.
The amount they offered was the minimum amount needed to make the board agree. They would not have offered the maximum amount they were willing to go to. If they did, they would have nothing more to offer if the shareholders rejected the offer.
If we shareholders reject, then they will comeback to the table with figures closer to their actual maximum settlement amount.
The closer this gets to a trial the closer they will move to the figure they have as their maximum.
(any out there know anyone who studied game theory or negotiations?)
MEL Price at posting:
5.1¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)