Hey RadioG I just noticed your George Costanza quote - nice...

Hey RadioG I just noticed your George Costanza quote - nice choice!

I suspect the rights issue price was negotiated to balance the following requirements:

- reflect some fair future value
- raise working capital for MGX's operations till the market improves
- sweeten it for existing shareholders so they'd approve it, giving APAC and Shougang the holding levels they want
- the over-the-market price also in a way compensates for the sale at cost price for the next 6 months of the IO (the premium effectively becomes the profit margin on the IO price)

I doubt it will be a takeover target any more because of the size of APAC's and Shougang's holdings - they can now block any takeover.

I like a theory someone posted a few days ago which said that maybe the SP will be kept depressed for a while so that will make a full takeover offer by APAC/Shougang at a premium of say 30% attractive, and then they get the whole box & dice.

Only time will tell...