Hi all,Just musing a bit over the situation.At what point does...

Hi all,

Just musing a bit over the situation.

At what point does OZL become a takeover target, and its cash at hand become a liability to the companies continued existence.

Now before you declare me mad let me explain.

Currently OZL sits with a market capitalisation of $2,653 million. If that was all plant and equipment then fine. However of that approximately $900mullion is cash, meaning that a takeover company theoretically only needs to find $1,753 million (ignoring takeover premiums etc). This is because cash assets are usually ignored in takeover calculations because you pay back the loan immediately with the cash you receive.

Now for $1,753 million , there may be a few compamies interest. Even Mx with the size of his portfolio may stage a takeover.

Now my figures aren't exact, but am I off the plane? Some of you accountant and investent types will have a view. I am only an economist and still think this company is massively undervalued.

Into my illustration you might even through throw in the shares in other companies like SFR that could be quickyl converted to cash and the situation becomes worse as the price drops.

So when does the cash reserves become a liability, or is it always an asset to survive a GFC when you have a good producing cash cow mine anyway.

Your thoughts. Please be gentle, I am only an economist

Regards