In the case of an t/o the oppies mean here to pay 40% more than without. That way it would make sense for the suitor to make sure the oppies won't get converted.
That could be achieved by either buying all the oppies or keeping the oppies out of the money. Both hasn't occured, in fact the opposite is the case.
Some one just playing for one pip is too risky as there is always the threat that 100m of shares suddenly get dumped and the sp tanks. The opposite is the case, only that many that can be sold to the first line get dumped. And someone is still happy and keen to absorb all the shares.
Why do a t/o with all the costly converted oppies if there is a much better way : Accumulate 51 %. It is enough to control. Not possible according ASX rules ? Of course it is by : 3 - 5 different parties working together but are officially independend. That is the most likely scenario why they continue to buy and let the oppies run. Assuming all oppies get converted they need about 2.8b shares to be above 50 %. Our Singapore friends hold already about 25%, 1b, so buying 1.8b over some months will do the trick without any sub-holder notice. Before the GFC BUL was owned 40% by ANZ nominees and nobody cared.
Big question : What is the highest price they are prepared to pay ? And another reason for my theory : These investors use clients money and to justify the action and to show their clients their money is in the green they keep a floor under the sp. Everyone wins, Investors control, existing management keep their jobs, sp won't fall, dividends will get paid year after year. Simple and effective.
MOY Price at posting:
77.0¢ Sentiment: LT Buy Disclosure: Held
