not sure how cbh could take over. I think any deal there is long...

not sure how cbh could take over. I think any deal there is long dead and buried. CBH have no capacity to raise further debt for a buyout and nor can they offer shares at current prices as it would mean a greater than 50% change in control of CBH and thus trigger the obligation under their convertible note to immediately pay back the entire $200,000,000 owed under the notes. I think this is why PEM weren't interested in doing a deal even at an increased offer by CBH of 3.5 shars for every one PEM share (approx 4.1 shares for every 1 PEM would trigger the pay back obligation). My guess is that PEM having had the chance to do a detailed review of CBH came to the view that they were over priced and if their was a merger at true value the obligation to pay back the Notes would make the deal worthless. As one analyst put it, the terms of the Notes are a poison pill to CBH.

Not sure of the difference between the companies other than CBH's huge debt burden. CBH have cut approx 60% of workers and Pem have just cut almost the same number, both have scaled down to more viable operations for current metal prices, I think its just a case for both companies to manage themselves well thru low metal price environment and position themselves to leverage off any improvement in the future. I hope for their respective shareholders they are successful in achieving this.