I think you are right Dyso. NCM has constraints on what it is...

I think you are right Dyso. NCM has constraints on what it is willing to pay! I agree with your statement.

Each of LGL & NCM has limited revenue generating capacity from their mix of assets which can be used to fund dividends or pay interest on debt or pay back debt. In that sense there is no physical constraint. Certainly this is true.

As NCM offer moves from 9.5 LGL to 1.0 NCM; to 9.0 LGL to 1 NCM; and into the future potentially 8.5 LGL to 1 NCM, there is the mathematical phenomena of LGL shareholders getting a greater % of final cake( total owners equity claim on total combined assts) compared to NCM shareholders. I am thinking of NCM shareholders perspective now, it becomes at a certain point not in NCM shareholders interest.


Though in the long run, as in the case of BHP & Magma ; as well as BHP & Billiton; it is so strategic in the sense that it opens up greater potential & greater opportunity. Even though NCM shareholders lose in short term they actually come out better in longer term.

My perspective is that maybe a company bigger than NCM can afford to make a more attractive offer in terms of cash & shares. This point of view is only a conjecture and that is why I am interested in any other potential suitors for LGL.

Finally I would like to emphasise to you Dyso, that I agree with what you have said, especially in regard to expression "NCM willing to pay a higher price".

wbddrss