Friendly Takeover - Please Clarify ..., page-8

The short answer here is that private investors like us actually don’t understand the rationale behind the current board’s appetite to go through with this deal. If you believe the latest production report “the road ahead looks good” with improved production at much lower costs. The trouble is we’ve heard this same news many times before so despite the the fact that new management seems more transparent we remain sceptical because words and actions don’t actually line up. Words say “the future is rosy”; the actions are that they’ve recommended to sell out and dilute us to a company which looks like it’s having its own problems! It doesn’t make sense! So either;

1. Management is lying about the future BDR economic viability and desperately needs to sell, or

2. Management no longer has the energy to follow through and wants to bail at any reasonable price, or

3. GPM is the real deal and will add significant value to both sets of shareholders. 

I honestly don’t know which of the above represents the position!