yep spot on Hendrous. any bid, goes no where without the agreement of NHC and EIT. so yep it was strange that l/b would go hostile and announce it and putting themselves at odds with the very people they are trying to win over.
my mail is that this bid was unsolicited, and disruptive.
it seems to be a spoiler.
this bidder would be pushing poop uphill: - ludicrously low bid (way lower than Petro offer of Nov 2012) - WCL is a far different animal now than Nov 2012.it is in a far stronger position, better market, better mgt, GSA imminent, Validation Report independently verifies prod target figures and field dev't costs etc, ground not subject to greenies issues, plenty of funding options once GSA executed, LNG projects desperate for gas etc,more 2P reserves since 2012 - l/b has to get 3 levels of Chinese govt approvals, and we have bitter experience of that hurdle. in fact it it a deal breaker of its own imho. -l/b has to get FIRB approval - no demonstrated funding source (I recall several attempted t/o of junior mining coys by chinese predators, which fell over because of funding issues)
I recall with the Petro bid, it took a huge amount of mgt time to provide them with d/d data. mgt had to spend time answering questions, and every time something changed at WCL, mgt had to report it to Petro as part of d/d. also Petro got access to confidential data, which now is in hands of Chinese, so WCL has lost control of that info.
so we s/h can ask why would wcl put the potentially huge company-maker GSA on ice, or jeopardise it, on basis of what l/b has submitted to wcl board?
they seem to be quite unsophisticated - cannot even proof-read their letter to wcl! they obviously used a previous letter as a template.
going public with letter is copying the Myers/DJs situation - where myer approached DJ with a merger proposal- DJ board said P/off. so Myer went public, and DJ s/h forced DJ board to engage with Myers. But as you say Hendrous, that is waste of time when two biggest s/h of WCL would have been the ones who told l/b to p/off.
all in all, imo they would need to double bid to even get WCL to give them a seat at the table!
plenty more to play out here, for sure
WCL Price at posting:
29.2¢ Sentiment: None Disclosure: Held
