Firsova - Now that PaperlinX is on the recovery path, there is no way those who refused the first offer at 1:250 will suddenly take leave of their senses and accept a new offer on the same terms. One is looking at perhaps 5% of holders who'd capitulate.
Price made a terrible strategic blunder by not extending the original bid and increasing it whilst the future of PaperlinX was so uncertain. Given that the vast majority of hybrid holders refused your logic and that of the Board at the time, it stands to reason that any future offer needs to be made at a substantial premium in the hope of snaring any significant percentage.
But with the turnaround seemingly underway, it is now an entirely different matter. Perceptions of the stability of the company have improved. Look at the optimism in the annual report! An increasing number of PXUPA holders will have their eyes on the face value of $100 - and will make a determination as to the appropriate discount to that value that they'd finally accept - rather than the $17.50 which they'd even more so consider as "theft" under what are improving circumstances.
In short, you make a bid when things are looking down, not up.
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