Forced takeover Well... congratulations are in order to the individuals who decided to tender prior to expiry... Effectively allowing another bully to win a victory against the smaller/retail shareholders. I am always amazed by the lack of cohesiveness demonstrated by some shareholders when it comes to fighting the good fight. The bullies seem to always find ways to wear/bear down the small guys using all the tricks in the books. Even though it is to our benefit to stick together, ineluctably they play on fears, impatience and insecurity and win. Here are some more examples of companies that were 'stolen' because shareholders did not gang up together to stop the carnage: Kinross/Aurelian, Cliffs/Freewest, Cliffs/Spider, White Tiger Gold/Century... and now add the underhandedtakeunder of HRG by Nord/Severstal, a repeat of the Crew saga... Won't we ever learn and grow a spine? Well, in other cases and in particular contexts, there is some hope as shareholders are slowly learning to band together and revolt.
It is interesting to note that most of the companies cited above, that dealt less than honorable deals, are finding their subsequent efforts stymied by obstacles, taking the shape of government intervention, native issues, regulatory hurdles, unforeseen mining challenges... as if the bad Karma had to be expunged. I look forward to sporadically following the Nord story to see if and where they will stumble next. There is no honor between thieves they say...
In any case, thanks to Chris Charlwood for taking the pole these last 3 years, it is unfortunate that Sprott did not use its clout to acquire shares on the market and become the HRG shareholder champion. Well, since they did not do so, they are going down with the ship like all of us. I will definitely pledge my good vibes/intentions and support to a just and fair resolution should proceedings be initiated against Nord for shareholder oppression.
On another note, if someone would prefer the transaction to be completed after December 31st for tax purposes. Would it be possible not to tender prior to the Expiry Time, wait out the compulsery acquisition and be forced to tender by law afterwards and get paid in 2013? Would this work? Any risks? It is my understanding looking at the purchase offer document that they pledge to take up all tendered shares within 10 days of the Expiry Date and pay no later than 3 business days later. Considering Dec 8 as the Expiry Date, adding 10 days + 3 business days would make receiving the payment no latter than Dec 21st... making this a taxable event for 2012.
Good luck to all of you in your other investments
SB