CNP 0.00% 4.0¢ cnpr group

sp manipulation a strategy for takeover

  1. 3,807 Posts.
    in an earlier post i stated the following. below that i continue...

    with centro now in a stronger position, it calls the hand of negotiating parties. the stronger centro gets, the more money it will cost the buyer

    one of the conditions of finance is asset sales. if centro DONT sell something, they will be forced under. all potential buyers know that too.

    so centro must play one buyer against the others. hence them keeping so much so close to their chests. we saw yesterday the level at which this game is being played. even media is being used to create outcomes using false info.

    IMO we have the right man for the job though. and he is possibly the most important factor in the whole scenario, considering it is not so much running a business profitably which is important, but it is NEGOTIATION skills that count the most.

    to continue....

    for arguments sake the SP should be about 60c except for the (possible) manipulation. the reason an interested party may want to manipulate the SP is to get share holders to accept a smaller TO share price in the event of a TO bid.

    at 36c, long suffering investors are more likely to take $1 for their shares than if the SP was trading at 60-80c. the ammount it would cost an interested party to stall upward SP movement would be tiny compared to the end figure it would save by doing so.

    im not sure that this is happening. but it is plausible, and worth considering.
 
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