My email subsequent to that email is as follows and unlikely to get any further response. After all, what can they say - the proof has been in the pudding, as the saying has it.
Thank you for your reply and the detailed explanation. The Board's election of Option 3 which, you say, was considered to be "the most efficient way to complete the merger" neatly side steps any reason as to why this option was taken. Effectively, it gave no vote to Oxiana shareholders. This leaves the Board open to the charge that the Board was concerned that its shareholders would have voted against this merger, had it been given the chance to vote, and thus a desire for the Board to have its own way, without any consideration as to its shareholders wishes at all. If Option 4 was taken, then the two companies could at least have been permitted equal rights. It was supposed to be a merger of equals but we were not treated as equal. Justice should not only be done, but be perceived to be done. Not so with this merger.
To say that the choice of Option 3 was made because "that would produce the best outcome for all shareholders" is somewhat presumptious. Without the merger, most Oxiana shareholders believe they would not have had more than 40% slashed from their share price as has now happened.
I am aggrieved by not being permitted the vote. It is hypocritical to pretend 'team spirit' and then ignore your own shareholders when making a decision of such magnitude.
I write all this, well aware of what has happened to the Australian share market since late 2007 and in many other countries' share markets. I am also aware that unpopular though some moves by Oxiana have been in the past, they have subsequently proved to be good ones. They, however, were never as dramatic as this one has proved to be to Oxiana shareholders.
In this case though, it seems the damage may be too great and that a predator company will get Oxiana at a price considered by long term holders like myself at far too cheap a price. The timing of this merger decision has played right into the hands of an opportunistic takeover offer.
Anyway, I am sure nothing I say makes any difference to anything at all.
OXR Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
