GREY:MAAFF - Post by User
Post by
Brainwave1on Aug 23, 2010 12:19pm
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Post# 17374906
End game
End gameIt is looking like this long drawn out story is heading to some kind of end game this week. The signs are that it will be a buy out on relatively cheap terms (for Complant) and that MAG management/insiders will walk away with what they've wanted all along; longs who have been long enough will still do ok, and those who have bought in at various levels could still lose money.
having to raise interim funds to keep going via dilution. If it is true that the independent valuation for the buy-out is a term of the orginal deal that will no longer be respected, is it possible, even at this late stage, that MAG management could still walk? For them to do so they would have to be confident they could get better terms elsewhere. That is either self-financing (an option they'd turned down before, but it seems at price levels that are no longer available anymore) or another partner. Re latter, there doesnt' seem to be anyone. Complant was the best the could do. Even with Potash Corp in play now, no one seems interested in a smaller late stage development project in Congo. And if they did walk at this point the results would be: a further crash in the SP, 1 and 2: This points to MAG management sucking it up and moving on.