Yeh KG, saw the interview with Kloppers and your cherry pick logic makes complete sense, except for the fact that when you get a beauty parade of buyers a big buyer can come and do the same and not realise firesale prices but more realistic prices as time is on their side...especially nickel and gold assets.
With an outright offer for OZL you gain full control....and they can choose optimally for their business which assets to warehouse and which to offload now.... or knowing that the market cap of OZL was $12B and is now $1.7B, allows for enormous unlocking of value as clearly the market is applying a huge management discount to OZL. Market clearly does not like Michelmore and Cusack and the poorly fragmented shareholder base of OZL means AM/BC are in full control. If AM and BC resigned instant billions of value would be unlocked, guaranteed.
A takeover from a player like Glencore/Xstrata/BHP/Chinese removes AM & BC, unlocks maybe $6b in intrinsic value for a player not affected by the GFC.
As for Hegarty hes like rumsfeld.... there are some things we know and somethings we dont, there are "known knowns" and "known unknowns"...etc you get the picture. Well just have to wait on that one.
Off for swim at Balmoral. Clear my head. As it was messed up this week by a mas bonita latina chica. Latinas... muy peligrosa por la corazon y en ti vida. Headaches grande mas...pero especial latinas eres diamantes.
La Paz !
:-)
OZL Price at posting:
$5.50 Sentiment: None Disclosure: Held
