GREY:MAAFF - Post by User
Post by
Brainwave1on Aug 23, 2010 12:21pm
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Post# 17374920
End game?
End game?It is looking like this long drawn out story is heading to some kind ofend game this week. The signs are that it will be a buy out onrelatively cheap terms (for Complant) and that MAG management/insiderswill walk away with what they've wanted all along; longs who have beenlong enough will still do ok, and those who have bought in at variouslevels could still lose money.
If it is true that the independentvaluation for the buy-out is a term of the orginal deal that will nolonger be respected, is it possible, even at this late stage, that MAGmanagement could still walk? For them to do so they would have to beconfident they could get better terms elsewhere. That is eitherself-financing (an option they'd turned down before, but it seems atprice levels that are no longer available anymore) or another partner.Re latter, there doesnt' seem to be anyone. Complant was the best thecould do. Even with Potash Corp in play now, no one seems interested ina smaller late stage development project in Congo. And if they did walkat this point the results would be: a further crash in the SP, 1 and 2:
having to raise interim fundsto keep going via dilution.
This points to MAG management sucking it up and moving on.