GREY:HRIVF - Post by User
Comment by
SergeBruneton Jul 27, 2009 5:54pm
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Post# 16169894
RE: Expect increase of offer to .30
RE: Expect increase of offer to .30In my opinion, it would not be a very good strategic move to offer 0.30. They will only waste time and effort trying to justify the updated price. It would also confirm what we all know about Severstal = bully. If they are really serious about acquiring control of this company, the offer should be high enough that many minority shareholders (and mostly funds) will be tempted to let their shares go. In fact, if I was Mordashov, I would negotiate with the private funds a price that they feel would be acceptable (what they should've done in the first place in March...). By reading the letter issued by the funds, they would be open to let go their holdings for about 1.20.
I hope Ccharlwood has gotten hold of them and that they have also pledged to hold their shares until a fair price can be obtained by all minority shareholders.
If Severstal plays around by increasing their offer piecemeal, they will be laughed at and never be taken seriously, meaning that the share price will always leap well above their offer price.
SB