In terms of why NXS bailed, I think what Tony Strasser says probably has truth (as quoted in the SMH this morning ‘Nexus Walks Away from $648m Anzon Merger’) – that the bankers pulled the plug not NXS Management:
"Mr Strasser said he thought [Nexus] was struggling to raise the $225 million in cash it needed to complete the deal. 'It is a difficult market,' he said. 'They were borrowing all the money.'
The bank debt had been contingent on no changes in the field due diligence - including a reserves report - which had been provided in January. Mr Tchacos said the problem with the deal was value and not funding, but he noted Anzon's reserve position might have changed while the deal was in progress."
I am back in at $1.15 today (but half of my previous AZA holding. If sp drops further, I have further funds to top up).
Cheers
AZA
anzon australia limited
