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Gold/Mining/Energy : Global Thermoelectric - SOFC Fuel cells (GLE:TSE) -- Ignore unavailable to you. Want to Upgrade?

To: AriKirA who wrote (1861)	5/10/1999 10:25:00 PM
From: VisionsOfSugarplums	Read Replies (1) \| Respond to of 6016

Here's my take (very similar) - A permitted bid is a bid that remains open for consideration a minimum of 45 days and during which period no tendered shares can be acquired by the bidder. The fair value of the bid does not enter into the definition of what is a permitted bid - the bid could be $2/share and still be "permitted" provided that the bidder allows the GLE board 45 days to line up their ducks. If the bidder makes a bid that is open 45 days but acquires tendered shares during this period, then the rights will come into being but can only be exercised if the bidder acquired more than 20% of the shares(bidder trying to lock up enough shares that their bid would go through despite what management says or, at the very least, have a very strong influence). So, this protects the shareholder in that it gives the Board at least 45 days to consider a fair or unfair offer and to try to find alternatives. It also protects the shareholder because if the bidder makes a takeover bid that is open 45 days and in the meanwhile locks up a bunch of shares, the bidder still won't have a good control position because the rights will be issued. However, if the bidder actually established a control position in this period and got 50% of the shares (like you said AK, BoD approval probably exists here), the plan extends the open period 10 days so the remaining shareholders (now a minority and in a weak position) can tender their shares. This will also make it easier for the takeover position to be established (66 2/3%) and any remaining shareholders can be squeezed. Regards, t.