Companies make decisions about takeovers based on their estimate of value in the company - cash, cash flow, debt new projects etc. They do not make it based on what the ASX says the share price is. That would be irresponsible of their Board.
Biota is currently only $2. If I decide to take it over at $2 and I think the real value is $5 then good luck to me. If it is more than $5 then I loose interest because it is my companies valuation that matters not what the ASX shows on their boards.
Every company that looks at Biota will place a different value on it. The range could be as broad as $2 - $10. Having taken over numerous companies in the past my only interest in the current share price is will it let me get Biota at a bargain price less than I am willing to pay and I will have a strategy to get retail investors shares well before they know what is going on.
But I will pay what I think it is worth not what the ASX is telling me.
regards J
BTA Price at posting:
$2.00 Sentiment: LT Buy Disclosure: Held
