Andrew,
I think they will have to sweeten this bid to get the insiders on board.
They may, but not by much. Short of a higher offer from another party, I suspect that DeBeers may offer only another $.25 or so, just so WSP can save face and satisfy everyone that all that could possibly be done, was done to get the best possible price from the one and only bidder. Just because analysts have pegged the value at around $7.00/share, or because we know the deposit is worth at least $10 to $12/share, doesn't mean we will get it. If DeBeers announces 50.1% tendered before expiry of the tender offer, you can be assured that everyone remaining will tender before the deadline, not wanting to risk being left in a minority position,with poor liquidity at much lower prices. I suppose it could be even more gut wrenching if DeBeers doesn't declare, hoping to only have to buy somewhere between 50.1 and 60%, thereby saving their cash for diluting the remaining minority shareholders at a private placement share price lower than the $4.25 offer as they moved forward with development. Would you gamble at the 10th hour that the bid will fail allowing RT and crew to somehow work their magic, or worse, leaving yourself stranded in a minority position after expiry of the offer? Without a white knight, IMO, it appears our gooses are cooked at $4.25 and maybe $4.50 at best....
regards, teevee |
