GREY:HRIVF - Post by User
Post by
metalmaniakon Jan 18, 2009 3:56am
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Post# 15711935
HRG: The reality
HRG: The realitythis is the reality of the present situation:
operationaly, things are a total mess, as they are financially. Mosher and Whalen fuked up badly.
On he other hand, Severstal has already spent 60 mil dollars on the company, and cannot simply walk away, as the value is stil very much there if/when they fix the problens at Taparko and Berez.
Severstal could easily put in an offer to shareholders at .10 cents, which the shareholders should reject. Severstal will likely start to attempt to scare people as to how bad the sitaution is, as IMHO they will submit a tender offer and a low one.
They will have to get an independent fairness opinion, which of course will be bought, and will agree with the low offer price.
I think Cormark or CIBC could easily raise 50 mil here, and that is my hope. Severstal would participate pro rata as would institutions.
All this will likely be decided by month end.
It cannot go BK, as Severstal will lose 60 mil bucks in that case, and they will not allow that to happen.
There is still hope here, but certainly big question marks.