Nutbar this how a takeover works. Shareholders don't vote on it....

Nutbar this how a takeover works. Shareholders don't vote on it. You as all shareholders, will receive a letter asking you to accept an offer for you to surrender your shares on a 9.5 / 1:00 replacement. You have the right to refuse despite MYG management recommending acceptance. Once a minimum of 90% of shareholders have surrendered, the remaining 10% will be compelled to surrender their holding as well. That 90% threshold is critical. If the bid falls a bit short, to get it over the line, sweeteners can be offered such as a lowering of the ratio, or some cash or options thrown in. All surrendering shareholders would get the same deal, not just the last few holding out. That's the mechanism. Now to the atmospherics.

The basic reason for this takeover is sound. It essentially amounts to, in this low gold price environment, to a sort of "united we stand, divided we fall" type survival strategy. And that in turn will involve belt tightening and economy of scale as far as admin. costs go. This is the one to watch.

The MYG board has recommended the takeover, which means that unless there is a new amalgamated super sized board whereby all existing directors retain a position, then the recommending directors are effectively recommending themselves out of a job. Very noble but questionably plausible, and yes just possible.

A common trick is for side lined directors to be named as consultants to the new board with flash fees to match. Watch out for this, and if it should happen watch out for familiar faces. Should this eventuate then they will have to prise my holding out of me as I will resist to the bitter end. No doubt others will as well.

In current austere circumstance nothing would earn the board more respect than, apart from lean salaries, to scale back their office comforts to laminex tables and chairs with the only small luxury being a second hand $50 beer fridge in the corner.


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