GREY:HRIVF - Post by User
Post by
cjsellon Mar 31, 2009 9:37am
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Post# 15883859
It's a game of chicken
It's a game of chickenSeverstal wants to buy HRG for obvious reasons. HRG is not going to go bankrupt. Royal will not pull their loan they are getting 25% on their money. Banks won't pull their loans because HRG is now making money. Mr. Lyons left because he was only there to help broker a deal, no deal he left. Severstal placed their folks on the board, only two were not nominated by Severstal on the board now.
Severstal made their pitch, and they (wink wink) backed off. Severstal does not want to put their $56 million at risk, they have to answer to their board as well! So they will play dumb like a fox. Severstal wants it all lock stock and barrel.
Yes FY08 will be a dud, but then we all knew that, nothing new there. Run the numbers, and you will see that HRG can turn a profit and pay back loans etc etc etc.
If you can stomach the manure on the garden, by late spring we should see some blooms!
Next critical day is June 10, (if we ever get there) that's the day HRG has to comply with the TSX.
CJ