As I have previously posted here a number of scenarios could play out from here.
1.Clearly ADM has flagged its intention to buy up to 24.99% to get to its ultimate goal. Well we know its ultimate goal is to takeover GNC so thats somewhere between 50.01% and 100%.
2. CBH step up to the plate a lob a takeover of GNC while share price is down and ADM have been temporarily knocked back.
3. A JV bid by ADM with another Australian player (could be CBH or potentially another Australian player) for GNC.
Option 3 clearly is the one that has the highest probability for getting up from a foreign investment perspective.
Last price bid was $13.20 that got acceptance from GNC directors. I would envisage a slightly lower bid would still get over the line by both board and shareholders.
GNC Price at posting:
$8.87 Sentiment: Buy Disclosure: Held
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