Hi there Andre.
There is also one more possibility.
We don't really know how good GBU is. From the official news release both companies are being presented equally as far as property value.
I have brought to this discussion pieces of information and speculation why GBU would be so attractive, PVO's release did not.
In perspective they have hired GS&Partners to do the walking for them and I could assume this is the best thing for PVO's capabilities.
Although the goodness of it doesn't make me to fall on my knees. There are probably about dozen companies who made claims and one time or another to have indication of deposits and inferred resources, which in this particular takeover is not being highlighted at all. The purpose of any takeover is to increase shareholder's value, once again we look for that with the candle light and this deal is not even close to idea of deal in buyer's market, which was suppose to be.
This news reads to me still in the official form:dilution in order to spend part of working capital of $12.8M on properties in Romania and Bulgaria.
It has been said on this thread that D.Henstrige is a man of action and purpose. It was also mentioned that PVO shareholder will see the benefit of aggressive operations and acquisitions.
Operations has not been aggressive enough or should say successive enough in the past, therefore for this transparent reason Bradstone showed up in the picture. Bradstone as I said in my other post was/is after the money not PVO in whole. Meaning, get enough shares to get to decide and start making ones to the future of this $12M. Not exploration or production certainly. Where is D.H located? Really nowhere. Bradstone was said here,to have 20% of company which I think is about only 16 to 17% in my calculation. Well, not anymore. There is going to be about 33M new shares which will thin out their stronghold position. We don't know who really Frank Timis is to D. Henstridge, do we? Board of directors can approve acquisitions without shareholders consent, as this is not a merger, new company requiring name change, new board, etc. David comes out after takeover probably as a stronger insider having more support in larger board of directors.
He would save $12M for exploration,himself and Peruvian after all. With so many shares out, Bradstone must buy 3 to 4 times more to regain their position, which could not be worth the award. Anyway the funds can be tapped into as soon as end of next month, not enough time to call for reinforcements.
Logically Bradstone in case of 20% must have present the takeover offer to PVO. If they wanted to kill this deal they had to buy PVO, they can't do this. This wasn't their agenda. They have bought in ranges of 0.88 and 0.95 so to start unloading at 0.76 is not good investment at all.
We must all see what will happen from here. Maybe this will be a great benefit or maybe it is a suicidal deal. I am sure this is not a corporate suicide for David Henstridge. I do still use my own candle to find reasons why value of my shares has increased, maybe because company keeps me in the dark.
Regards and have good weekend to all.
Robert
Ps. Bob thanks for inspiration. |
