But Mickey even back in November, SBM had they bid would not have achieved much of result. The register was just as tight then save for about 2% difference to now. Your argument seems to be based upon the supposition that SBM are somehow sitting in pol position here and if they had made a bid in November could picked up large tranches of stock on the cheap. I disagree. The only way they will get enough stock to get control of this ( if that is indeed their objective ) is to make a compelling case to the controlling holders.
As far as obtaining further funds for drilling in the future. IMO that money may well be raised strategically with due consideration to the ramifications of SBM increasing their stake & thus possibly affecting the future buyout value of the other large holders. In other words management may indeed look to those that are more closely aligned to their own best interests and hip pocket. That could mean funds via a placement to another source. J. Pitt could well decide to fund the next round of drilling. Maybe even the sale of Peels stake in one of the other projects to their J.V partner ?
Solomon Lew was only successful in green mailing Woolworths to buy him out of Country Road because he bought a blocking stake in David Jones before Woolworths could bid for it. David Jones was far more important to Woolworths than Country Road. Otherwise he would still be stuck with his minority stake.
PEX Price at posting:
76.5¢ Sentiment: Buy Disclosure: Held
(20min delay)
