I'm not so sure about that. Term deposit maturities can be broken early for an interest penalty which would be the least of their worries for a major corporate action such as this.
Needless to say, if the acquirer is entering into such a big deal and can't manage their term deposit maturities against fullfiling takeover obligations, they will have trouble running the business.
Instead the only substantive reason as to why they missed the full 3.8 million is they simply they didn't raise the funds.
Damn, if they can't raise the funds for a deposit, they're not going be able to raise the funds for the equity contribution component of a financing deal. Let's remember the sorts of numbers we are talking about here....$55.4 million in cash to Run (made up of cash and debt from the acquirer).
The SP has been no where near the takeover price due to the lack of confidence in the deal progressing. Thankfully it remains at 16 cents, a fair price for the value of Run without the bid, but with the cash banked.
RNC Price at posting:
16.0¢ Sentiment: Hold Disclosure: Held
