Sometimes I feel that I am in Alice in Wonderland.
The Chinese entity would have offered at least $.50 for the entire company and we could have taken our 100% gain and invested the profits where we wanted. How do I know they would have offered at least $.50 for the entire company? We know they offered $80 million for Zara plus up to $20 million for surrounding land or $100 million in total. If they bought the company outright, they would also be entitled to the $40 million in cash that Chalice will have once they receive the payment. That is $140 million or $.56/share. They would also get Mogoraib for free.
The Chinese would have offered at least $.50/share on a take out if management would have been interested in selling the entire company. They would have been stupid not to (the math says so).
So as a result, shareholders lose and management wins. If you can live with that injustice, good for you. I care about my investments and know when I have been had - shame on me.
stateside
CHN Price at posting:
27.0¢ Sentiment: Hold Disclosure: Held
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