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Western Wind Energy Corp V.WND



TSXV:WND - Post by User

Comment by agrossfarmon Nov 29, 2012 12:10pm
161 Views
Post# 20660700

Read the Brookfield filing

Read the Brookfield filing

and it may give a better idea of  what Brookfield is are going to do, Nakate.

They say nothing about gradually buying shares. They may buy them quickly, moving the price up now (but possibly hoping that the price declines later) or they may try to buy as cheaply as possible, only under a set price, for all we know. Or they may not buy any (which I doubt).

And the SEDAR filing clearly outlines that this is a permitted bid under the Poison Pill rules passed by WND, so that if any WND shareholder tenders to the Brookfield offer, they have until the last minute to do so. IMO, it would be foolish for WND shareholders to tender to Brookfield earlier than necessary. Tendering would only encourage them to hang tough with their very low offer. If they get nobody to tender, they could even increase the price they are offering to entice people, even if there is no other offer on the table yet (and I believe that Jeff will get us an offer that will be higher than $3, after all the tax deductions and the Pueto Rican project are worth about $2 per share alone, to the right buyer).

And if anyone tenders their shares today or next week or at any time before the deadline, they are free to withdraw the shares that were tendered... to sell them on the open market, to hold them, or to tender to a better offer. In other words, Brookfield cannot tie up anyone's shares. And they may or may not buy up to 5% more of the total share count, at any time and at any rate from today on.

Since their large shareholding makes them an official "insider' of Western Wind, any purchases they do will have to be reported to SEDI, where they will be available for public scrutiny shortly after the declaration is filed. I am sure that Jeff and the Board will be monitoring the situation. I would like to see them purchase some shares at current and higher price levels. It would support my guess that they would be willing to pay much more to buy the company. I will not be surprised if they top the highest bid from the Rothschild process if the Rothscild deal sells everything to one buyer. If the assets are sold to multiple buyers, Brookfield might be left in the dust even if they wanted the California assets. But Brookfield is not easy to predict. I have been told (by a reliable source familiar with them) that they sometimes bid high and sometimes they bid low when acquiring their generation assets. 

It would seem to me that the higher the market price for the shares, the more it will be easy for the ultimate buyer to justify paying a high price to their shareholders or principles (if it is not a public company buying... and I would not be surprised if it ended up that an insurance company ended up owning some projects or the whole company...just guessing). 

Plus a higher market price will make shareholders feel more optimistic and IMO that is a good thing.

 

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