I like the price action today but don't understand how it benefits a suitor to SDL looking to build equity. If the Steel Orbis website was even partially correct (about a WISCO exec talking up the deal) why would it benefit WISCO to tell media of their interest in a target?
Can't be because they want to pay a premium price for the deal. So maybe the terms of the deal aren't related to a certain shareholding but rather a favourable off-take agreement.
Maybe this increases the price to make SDL less attractive to other strategic competitors who favoured more equity participation?
There could be upside yet for less dilution I hope.
SDL Price at posting:
35.0¢ Sentiment: Hold Disclosure: Held
