I do not like their chances of delisting BRM at 80% given all the complaints to ASIC and ASX plus BRM shares are more liquid than WNI script. The shareholders letter and the BRM Target's Statement refer to risks in not taking on the offer. One of the biggest risks for accepting the current offer is the illiqidity of WNI shares which are also declining in value.
Once we get past 23 April 2012 and the offer expires then a new valuation will need to be done if they want to acquire the balance of shares whether compulsary at the 90% or not. A couple of weeks back "Reader" posted that the valuation can also be challenged by the courts and that the courts may even direct BRM to pay for a new valuation on behalf of minority shareholders.
Also how can WN remove the condition that they will not delist BRM at 80% to encourage shareholders to accept the takeover then when they get to 80% apply to the ASX to delist BRM. It just does not make sense.
In any event I will contact ASX tomorrow and obtain their comments on this scenario. IMO we should also compain to ASIC about the letter.
In the wash up WN are getting desperate.
BRM Price at posting:
$2.51 Sentiment: Hold Disclosure: Held
