GPG, have indicated that they "in principal" will support the offer. From the documents sent out it is obvious that GPG have not reaffirmed this position because the board states that they expect GPG's position not to change. If GPG are sitting there and see the lost value in accepting the offer I suspect they are positioning themselves to push the offer up. GPG are sitting on 19.99% so unless tehy go for a takeover they can't buy more.
Coastal, they are a hedge fund that targets these types of arb's. they are sitting on a gain of 35.6% and have been buying up to $0.098 cents. They hold around 14.99%. There is nothing saying they haven't stopped buying, they may have just paused so the SP drops down a little and they come back. They have not indicated whether they support or reject the offer, however just like GPG they are in the box seat to negotiate with the debt holders.
Both parties are in a great position. they are both sitting on a good profit at the offer level so accepting the 10c is a great result and risk free, but they are also in a position to ask for more! The question is how much risk do they believe there is if they ask for more and is it worth taking that risk to try and push through for a higher price.
I believe Coastal are smart enough to continue to build up there stake and ask for more before the vote. that way they can sort out there position before gonig to the vote. Taking the strategy to the vote and then voting No is a higher risk game.
Im hopeful of a 15 to 20 offer, even though the business is worth much much more.
Alinta is not broke! it is paying it's bills and servicing its debt. The debtholders are greeding and are trying to rob the shareholders!
AEJ Price at posting:
9.7¢ Sentiment: Hold Disclosure: Held
