The offer...After reading the "offer" and the other 200 pages I have come to the conclusion that we will be hard pressed to be successful in a legal action. Which is not to say it can't be done, but there are NO gurantees. We can't force a price on Severstal, all we can do is reject it unitl they raise the bid. They can take their sweet time.
Case in point, say you paid $X for your house, now the market is different, the market decides the price regardless of what you paid. I totally agree the asset values are there are are becoming more valuable every day. But the fact remains that Severstal is in control, and barring a miracle no other bidder can buy them out, unless thay want to sell. Severstal's legal council has been very good, at mis-direction, and using the time honoured valuation methods which are used every day to their advantage.
Here's the rub, I take great exception to the valuation methods. Theye are using $850/oz not the current $1,000+/oz. Let alone how they value the NAV for all the assets. Which brings me back to the house analogy. It's not what your house will be worth in the future, but now. Severstal is ignoring the fact that within 18 months HRG will be humming. The market decides, period, but in this case this notion has been perverted.
I believe the independant board members approved the "VALUATION RANGE" and Severstal played musical chairs unitl they got the stooges to go along with this "opera". If Severstal had chosen the high side of the valuation (say .40/share) this would have been more beneficial to them now. But they did not and they are trying to force through a low ball offer. Like I said before, they went from .18 to ,22 and at least thought to themselves look at my better offer. I agree it is a total sham.
I am looking for a better offer from Severstal, and I believe they will acquiesce to .35 before long. The market is telling Severstal their offer is too low, and at least for now, there is nothing they can do about that. Here's to a BUCK!
CJ