"Alleyronin You should be on the SFR Board and I would accept your proposal right now for my SFR shares lol"
Did mean SFR or OZL Board Taipan?
I think you and I have been on a similar wavelength on this for a while. Such a takeover/merger needs to be analysed every which way but mainly from a macro level. Is it the right fit, right chemistry, right timing and right price. Terry Burgess would be the one with the best handle on this. If it is then it's up to him and Andrew Coles to put proposals before the OZL Board. Like you I'm only guessing what the possibilities may be.
You post contains a few if's and maybe's..... and rightly so. There is plenty of uncertainty around. OZL should use this to carve as much blue sky out of the acquisition price as possible and make the cash component really sparkle(a bird in the hand etc.)
On 31 December 2010 such an offer would have been laughed at.... as it would have implied a 13% takeover premium. On March 1 the same deal would have given a 23% premium. In today's light it would have been 33%, which is very attractive. EQN is otherwise presently occupied and who else currently has the spare cash, technical know how and would not need FIRB approvals etc.
In dollar terms it's $520 million up front which makes the acquisition plus Degrussa development costs manageable.
Interesting times ahead.
OZL Price at posting:
$14.80 Sentiment: Hold Disclosure: Held
