The announcement came out at a bad time when the US market crashed over 300 points. BUT having said that, can you imagine how much this Co would have dropped if the announcement didn't come out when it did. Caught in a catch 22.
Really sends a message to CAPE though that the directors do not want to sell and are prepared to play hard ball. Average price over the last few months is around $1.00 - $1.05 so I agree that $1.25 would be a reasonable starting point. Pcg hit $1.00 on news of a possible takover but is now worth $1.00 in its own right after this announcement But would CAPE be prepared to pay at least $1.25 per share. We know they have the money (just) and we know that they definitely want PCG but are they prepared to pay for it or to fight others for it. It would be an excellent bolt on acquisition for CAPE.
I would have thought the directors would not have disclosed the dividend just yet. If my company was getting taken over I would wait to the death knoll and declare as much dividends as I could and leave the takeover company with nothing. Maybe an agreement has commenced with an undertaking of a reasonable dividend to shareholders.
Just my thoughts.
PCG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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