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29/03/18
15:07
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Originally posted by k31th
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Excellent analysis PP as it will help quite a lot of people here who may not have been through a cash plus script takeover before. I've been through 5 different takeovers and I have learnt a number of lessons (some harsh). I'll also try to pass on some experience that might be applicable to AVB threass I've been reading of late.
1. It's best to hold til the final week in case a counter bid arrives. If nothing comes, and the bidding company already has control (50.1%+), it's best to accept the offer or get out while you can. In my experience, it has never ended well for minority shareholders between 50.1% to 90% after takeover. The majority shareholder can easily take control of the SP and turn it into a nightmare for the minority still holding. SBL and KRL were examples of previous stocks that were partially taken over (between 50.1 to 90%) during their infancy of mining operations and it didn't end well for those who held on.
2. It's your hard earned money that is at stake. Do not to trust anyone (including me) in this HC forum as you will find quite a lot of bad advice amongst some good. Everyone here has their own motive and investment choices. Best take everyones comments as a grain of salt. DYOR.
3. Don't get emotionally attached to your investment. Too many investors have lost money because they had clung on to something that has been their baby for so many years.
Good luck all. I sincerely hope every holder here will come out well from this.
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Does anyone have any examples where the minority % has done well?