With the MD owning 20% of tdo shares, and dls already owning 20%, there will be a sh&#^fight for 30% of shares. (sorry to hear dls MD got given the arse)
As i think most tdo shareholders will not be taking the bid, making up that extra 30% wont be as easy as you think - especially as this is a small cap company, and there are significant holdings by private individual shareholders
Having flicked through the bidders statement - it actually states that they will not be seeking for any tdo directors to stay on; they want the company for its oil reserves and cash (sticks to my theory of dls heomarraging cash and needing tdo to bailout its cash requirements); and comes up with some pretty hilarious statements about premiums on shares (even though in this highly volatile market, it means diddly sqwat - net assets are the most important measure of value as both dls and tdo shares are highly illiquid) - so, the devil is in the detail: with some of the best assets of the company (human capital) needing to resign, and that the cash which shareholders put into tdo last year will be syphoned off into developing dls projects (much like Alan Bond did all those years ago) which was not their reason for investing in the company
All in all, a terrible offer (IMO) - no chance of being accepted... funny that dls continued with it giving that the sentiment of most shareholders has been against the offer
TDO Price at posting:
9.2¢ Sentiment: Hold Disclosure: Held
