Here is my theory on the Winspear Offer.
Winspear sagging share price needed a boast to accomodate their diminishing treasury, in face of the damage suit payout among others factors. Mountain Province as well needed a facelift in share price to eliminate Nasdaq de listing. DeBeers enters the picture conspires to boost both the share price of Winspear and Mountain Province. Turner gets a treasury facelift, the offer is obviously rejected, DeBeers looks good to the Canadian public for their transgressions in S.Africa and Southernera, DeBeers acquires commanding control of the NWT Diamond production.
The balance of control still remains with Rio Tinto, DeBeers, with the threat of production increases by DeBeers various sources, ie. increasing Botswana production at Jwaneng.
In other words the offer is opportunisitic and well conceived to obtain a marketing foothold and increase their exposure to the real target, US Consumers.
Frankly, it wouldnt surprise me that this offer was premeditated on both Winspear, Mountain Province, and DeBeers.
Regards
George |
