Blindbat.
No, they don't have to make an offer until they go somewhere over 50%, if at all. I had CTO years ago and someone got 51%, INCLUDING THE NO GOOD PRESIDENT'S PRIVATE DEAL WITH THEM. sTOCK SANK LIKE A ROCK AFTERWARDS BECAUSE THEY NEVER TOOK UP ANY MORE, WHICH IS IRRELEVANT HERE BECAUSE NO ONE WANTS 51% OF THIS. tHEY WOULD TAKE THE WHOLE THING. Sorry about the caps on by mistake.
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I don't know how you find your information let alone base your Investment decision on , but I strongly suggest you refer to facts , as oppose to fiction or wild hypothesis.
At 19.9% acquisition of the Combine share count it is call a toe hold and no need to make a formal take over bid. At 20%, they HAVE TO make a formal Take over bid.
For your reading pleasure and some facts finding as oppose to wild hypothesis, try reading this maybe next time avoid commenting on matters that you obviously have not done all appropriate researches....
Excerpt:
SHARE ACCUMULATIONS
Toehold Acquisition • Purchases up to 19.9% (together with securities beneficially owned by
purchaser and joint actors) are not a "take-over bid", so no exemption is
needed
• Open market purchases or private agreements are permitted (although market
purchases may increase price or tip off target)
o Often done to lower cost of acquiring target shares because no premium
paid on shares
o May reduce offeror's risk by allowing it to recoup at least some of its
costs by selling toehold shares to a superior competing offer
• Pre-bid integration rules should be considered at this stage because of
implications for a later offer
12 Pre-Bid Considerations
• Québec securities regulatory authority may object to a toehold acquisition
if it believes offeror is "in the process of making a bid" at the time the
toehold acquisition is made
• Securities so acquired will not count towards the 90% compulsory
acquisition threshold, or as part of the minority for a "majority of the
minority" vote on a second-step going private transaction
• Purchases of 20% or more are take-over bids which require offers to all
holders of the class unless an exemption is available