Of course there is no bid, not yet at the moment. Discovery...

Of course there is no bid, not yet at the moment. Discovery metals must cancel its destructive capital raising plan first before Cathay would launch a new bid.

The article stated "CFC is willing to put a binding cash proposal to the Board to acquire Discovery subject to the proposed equity raising not proceeding. Australian law, however would bar the firm from making an offer below A$1.70 a share before mid-June or four months since its last offer lapsed". Cathay is well aware that its new bid, should Discovery cancel the capital raising plan must be higher than $1.70 per share. Cathay's legal adviser is the prominent lawyer specialising in corporate takeover, King & Wood Mallesons which has base in Sydney,Beijing, Melbourne and Hong Kong.

The difference between the old and new offer is the new one will be cash Binding offer and non-exclusive.

Having said that however, what worry me most is only the self-interest of the directors and the boards doing whatever they can to prevent the takeover to protect their high paying salary job.