Well it was always my opinion that Lion would bid. I thought it would be first, as was my post on the 19/8/09 (It is my view that Cheng Heng Jem and Lion Diversified Holdings Berhad will be the logical SP for POL, perhaps even a likely bidder!), but I guess MIN improved things for us.
With my experience in arbitrage, risk has been reduced with a second bidder coming in, I do assume that MIN will most likely come back with a counter bid if not inline then better.
This will give you an opportunity to participate in the production of the Polaris assets which I think are worth a great deal more, once they have the production and the ability to bring the ore to the market, MIN is probably the best to deliver this. Though I still believe they were low balling this value on there first bid!
Today I removed myself as one of the largest individual holders of POL! Firstly I couldn't resist the great profit I was making by selling at $0.60, secondly, and I say this without wanting to spook you because I do think there is more upside, but there are some risks there, even though there are two bidders!
Both have conditions, firtly that they get 50.1%, which they are both in a box set to achieve! However Lion has stated that they have the right to withdraw there bid if they don't get FIRB approval, or if acceptance excluding those that are made prior to the bidders statement by Lion (this condition is a little vague) in favour of MIN and if POL does not agree to any asset sales or development deals during the offer period.....
A few of these conditions make me a little nervous! So I decided to take my money out of the market as i do believe there will be more opportunities in the near term with rates going up and following a good run in the market. It is likely that we will have a pull back so why not cash up and take advantage of the pull back!
Sorry to leave such a smart group of investors regardless of our indifferences at times, it was a pleasure to be fellow shareholders with you and I'm sure with your keen eyes I will share the register and perhaps swords with you on opinions at times!
Good Luck!
POL Price at posting:
60.0¢ Sentiment: None Disclosure: Not 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)