PMM appear to have two three choices. Sit on what they have, call an egm and try to get a seat on the board or launch a bid. The first is probably unlikely. From a major brokerage house report this morning comes this comment on Portman
* Investment View: .......................... PMM reported cash of A$171.6m plus a further $38.6m on plus 90 day terms at quarter end. We estimate the company will have ~$400m cash by year end and, on our current estimates, will increase its cash position by a further $400m next year if it doesn't do anything else with the cash.
So they have the cash and this project is located perfectly for them to add to their existing operations. They may need to get more info by having a seat on the board so they are confident that the public statements made by GWR so far are a true reflection of what they have. After doing that it would be easy to see them launching a bid.
GWR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
