takeover offer questions, page-9

The management seems to be playing games, the 2nd announcement tells something else then the first one.

The first said the offer was the 30 day VWAP of MLI minus the value of MLI's WWI holding (based on the 30 day VWAP of WWI) The 30 day VWAP of MLI is 5,9 cents.

30 day VWAP of WWI is 10,2 cents -> means 0,5 cents per MLI share (33750000*0,102= 3449250 / 695,2 mln MLI shares)
So the offer is 5,4.

The second said the offer is 5,9 or 6,0 cents, which has to be confirmed by each party. That is nonsense!

Because for equities quoted on an exchange (like MLI, WWI and DRD) you can easily find the 30 day VWAP in Bloomberg.
The 30 day VWAP is a fact, not an opinion, so the complete calculation should have been done before the first announcement. One of the duty's of the management is shareholder communication, MLI's management still let's there shareholders guessing what's happening. And I think that this is the reason for the discount in the share price compared to the offer price (5.4 or 5.9?)

The sentence in the second announcement that the company will need cash (by issuing milions of shares at a discount price) if the take-over offer is not succesfull is just to 'scare' shareholders so the will accept the offer. We all thought MLI had 21 mln in cash and complete out of the blue they tell us MLI has only 7 mln and needs more if you don't accept the offer.

MLI spend 14 mln without asking it back in the offer terms. Would you sell your oldtimer after you spend 10.000 dollars on it to restore it in original state without adding the 10.000 dollars to the price. No, you wouldn't. So why MLI would?

I think we have to ask ourselves, what's in it for MLI's management. Who's familiar with the European and US banking system maybe knows managements sometimes receive huge rewards by selling the company to another company.

But there is also postive news for gold believers:

What's extremely positive about DRD shares? Just compare the DRD price chart with the gold price chart. If you believe gold eventually goes sky rocketing through USD 1.000 then you want MLI to have a lot of DRD shares. so that makes MLI a LT buy. Happy trading all.