Well, yes - I wouldn't expect enough shareholders to reject the bid. However ... there might be a better offer. Who knows?
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I admit that I was one of the sellers at $6.80. Actually think Beagle might be right - but mine was only ever a short-term trading position, and I can recycle the cash elsewhere. If it was in my investment portfolio, I would continue to hold - 7.2% annualised is still 'ok' to wait for 4 months, and thats a minimum return (6.80 v 7.00). Its quite likely that more offers will be flushed out by this.
Happy New year all!
And to you mate. I have plenty of the folding stuff so no need to sell and happy to wait and see if a better offer is forthcoming.
Interestingly, volume today is already about 3 x the normal average.
I am missing something here? the price is at $6.80 but bidder is willing to buy share at $7.00. Is the catch buy at $6.80 now and hold for 4 months for the take over at $7.00 to be executed?
I know there is couple of hurdles to jump over. The reason why the share price is at $6.80 at the moment is because buyers and sellers don't have faith it will go through at $7.00 in 4-5 months from now?
No...some people don't want to hold 4 months for extra 20c.....some see other shares have more opportunities in 4 months...with all due diligence n fees for pro advises....the deal will go ahead...
Thanks - understood.
Now it's thinking time, either cash now and move the funds elsewhere or wait for 4 months and get paid out at $7.00 - now that is a done deal at $7.00
Nearly a 3% yield for 4 months thats 9 % yield yearly equivalent, take off your brokerage.
It is depand on how many shares u hold...if 1000 share...the difference is $200..in 4 months...plus...don't pay broker fee plus dividend....