DIO 0.00% $1.27 dioro exploration nl

I still think this is a load bollocks and embarrassing, however,...

  1. 2,668 Posts.
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    I still think this is a load bollocks and embarrassing, however, in the interest of balance a few facts need to aired.

    Some of you have alluded to the point that a better offer may come along. This is possible. I had an interesting discussion with CO Sec and from what was said it looks like that this may, I say again may have some way to go.

    I think the key is that if AVO get 50.1% then it's all over and you need to be on the winning side. I was informed however that a number of large shareholders have committed to not selling citing that the offer is way too low. So majority holding for AVO may be a way off.

    There is also the matter relating to the recommendation by the board. The board have a responsibility to the SH in that if they say DON'T SELL and the offer lapses then the SP is likely to fall back to about let's say 50 cents Quite a lot of minority SH would be quite upset about this. Therefore the responsible thing for the board to do is to say unless there is a superior offer the board recommends you sell. ASX rules require that if the board make such a recommendation then they must sell their interests. The board are likely to wait to the eleventh hour to do so. I guess this will all be explained in the next target statement.

    Here is how I see it.

    Avoca get 90% compulsory TO

    AVO get >50% DIO SH screwed DIO SP falls

    AVO get <50% DIO Majority SH still in play against AVO's bid SP will retreat to xx cents in the short term.

    I feel that if AVO's holdings go over 30% by some margin then that will mean that some of the larger SH have caved in.

    As far as KPMG report goes I don't know. On the strength of the report the DIO SP should be self sustaining at around the 90 cent mark. I know that DIO have had problems but these are not insurmountable and KPMG would have taken these factors into account. So I don't what to make of it and please don't post a reply pretending you do.

    I always say never let the facts get in the way of a good story however we need to keep some perspective on this and see how things unfold over the next to weeks. The fat lady may be waiting in the wings but she hasn't begun to warm up just yet.

    Cheers
    BW

 
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