One of the problems with this scenario is that the numbers are...

One of the problems with this scenario is that the numbers are clear at this point.

Fas is worth 1:10 of GWR, so if GWR is to make an offer to FAS shareholders it has to be at a premium for FAS shareholders i.e 20c a share, 15:1 or a mixture of cash and scrip that ensures the takeover takes place.

The mistake FAS made was to lack the realistaion that in a reverse takeover situation the beneficiary GWR has to feel there is upside ie 7:1 when FAS was 50c and GWR was $2.50 or 10:1 when Fas was 20 and GWR was 1.50.

If you don't get the takeover done quickly you allow plenty of jackals to benefit from the LOSS of the deal.

Portman have shown that.

It might make sense for GWR to takeover FAS if the following is true

1. FAS has some tangible assets
as the GWR board is dominated by FAS board members and sympathisers it should know. If it doesn't that is a reason to dump FAS.
2. GWR wants to take back its shareholding - at the moment it would only have to issue 30 million GWR shares to take the shares back. This would mean GWR would have 140 million shares with Portman having 10% and the balance of the shareholding well spread, not a bad idea. But FAS price would rise making this difficult.

3. Better for a chinese steel company to buy 51% of FAS and gain a strong position on GWR's list. This is the most likely.