I am trying to work out impact of proposed MMX MIS merger to CHM.
If it proceeded then case will become a drawn out affair but prize get bigger at the end if successful.
For MMX shareholders it gets their hands on clean MIS assets and dilutes their exposure to any potential losses suffered in the cases.
Can see why MMX and its mates would buy up some MIS to push it through.
For MIS you have 100% clean assets and now you give up half of these for half of MMX IO assets which is only 50% ownedso therefore you get 25%.
Furthermore these assets are subject to a $3 billion claim plus the secondary 5% claim.
They will have to lay out all of their defences in the cases to Sino I would think before Sino would support merger and convince them likethey have to convince the judge that there are no cases.
I cant see the compelling arguement to MIS but from CHM point of view it I guess it is business as usual in preparing for their days in court.
Great theatre but wished it played out in days not months and potentially years.
CHM Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
