I reckon BHP would only buy out APG if they don't want anyone else to have access to the technologies. Could this be an anti-competitive move that ACCC or someone could object to? I reckon APG will be an "essential service" one day....
The royalty arrangement negotiated with BHP appears to be a smart move, preserving APG's rights to the technologies. Presumably the intellectual property rests with APG.
If they are have agreements with other companies, eg OneSteel, BHP may have difficulty buying them out. It might depend on how many such agreements are in place, and with whom, by the time BHP wants to make a move. Or does this suggest a takeover in the short term would be more likely, or that OneSteel (and any others?) would have no issue?
Also, APG management and developers of the technologies may have a vested interest in keeping control, after all those years of hard work. It could be heartbreaking to sell out. I think I'd hate to be a technical specialist who develops something like this and then has to let it go.
But then, shareholder interests must be paramount for this publicly listed co. I wonder if our interests could be satisfied either way, ie by being bought out or by retaining ownership and getting royalties instead? I wonder what the pros and cons of each approach would be....
I am getting tired of companies I like being bought out. When they sell, and if they give you cash, you just have to find something else to invest in!! But you always think you already found the best ones, so what's left just isn't as good!!
I like the idea of a $1.00 sp with 10 cent dividends. :)
On another note, I have a photo I would like to attach, can anyone tell me how to do this? I have read the instructions but I don't have a web site, so can't insert a link to it. Is there another way?
APG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
