Interesting close today. Just prior to close SP droped as low as $1.62, then over 70,000 shares traded at $1.65 at close.
Thinking further about Palo's conversion of its notes.
Perhaps AVO and its proxies already have enough shares to succeed in DIO take over?
Baker Steel who sold some 15% of DIO shares to AVO have since then acquired on market a further 2,628,842 Dioro Shares to increase its holding to 10.87% of Dioro. Baker Steel has increased its shareholding in Dioro to a level higher than prior to the sale to Avoca.”
Other brokers would also be accumulating DIO shares with the objective of selling them at a higher price to AVO.
"The anecdotal word from some analysts is that Avoca could pay the equivalent of up to about 80c per Dioro share – and still get a good deal – which, coincidentally was about what the stock was changing hands at late last week. There is also the belief of analysts that for it to have embarked on a hostile takeover of Dioro, Avoca must have confident designs on the 51% of Frog’s Leg held by Canadian company La Mancha."
Is this why Pala have converted their notes now and why the SP has been depressed to allow others to accumulate?
Got a feeling there is a good run just around the corner.
Any one else got a theory?
Angers
AVO Price at posting:
$1.65 Sentiment: Buy Disclosure: Held
