I hope Coastal take the deal. As has been pointed out, the more...

I hope Coastal take the deal. As has been pointed out, the more that accept, the more value is shifted to PPX.

I think they'll keep extending the offer (they can do this for up to one year) - as more accept, PPX price should rise, the 250 shares are worth more, so more will accept. It should snowball upwards. At 40 cents (ha!) the offer is worth $100 - that wont happen but you get the idea.

Ultimately though they have to get rid of the PXUPA, even if Paperlinx own 89%, or else they can't raise money and can't pay a dividend. They can only do this at a value of $100+.

If the offer makes it to 90% then they are looking at compulsory acquisition. It will be difficult to justify doing so under any terms other than the compulsory acquisition terms of the SPS Trust rules ie $100+.

So, I'm happy to sit it out. Management can act as confidently as they like, but they can't get rid of me for anything less than $100 unless I agree to it.

Of course, all of the above depends on management managing the business better in the future. If the business doesn't recover then on liquidation I may not get $14 back (PPX holders - you will get nothing and the liquidator won't be concerned about who paid what for what.)

By the way, my PXUPA purchase range is $45 (some) to $10 (most). For those PPX holders focusing on price paid - switch your money into indexed funds, you shouldn't be in charge of investing your own money.