JadedGood to hear from you! How is the great wet north?The take...

Jaded

Good to hear from you! How is the great wet north?

The take over issue is an interesting one. With so many biggies playing with the muck as you call it, a takeover couldnt be ruled out. In my view the fact that there hasnt been a move has more to do with Dye's risks/value proposition than it does with someone holding a blocking stake. While no one would get it for 19 cents, I reckon there is a price well short of $1 that would see many jump.

To a Sony, NEC, Pilkington, TATA, Dow, Du Pont, Merck and many others the acquisition of DYE would be the cost of a good R&D project. So as I say, the fact that none has swooped in the last couple of months says heaps. Particularly, TATA. If TATA has to give up $50-75 a square metre for the use of muck on panels (as was suggested by management some time back) owning the rights to the technology and retaining that $50 - 75 a square metre would change the value proposition for TATA massively. $100 million to 150 million for that might be a great investment. It would give them considerably greater room to move and might bring "grid parity" much quicker.

Having said that, a hostile takeover doesnt require 100% acceptance. A bidder could be happy with 51%. While compulsory acquisition kicks in at 90%, you dont need 100% to get effective control. From memory there is a point somewhere around 75% at which you can delist it too. That would leave the minority shareholders marooned or just where they want to be (out of public view).