TSXV:AAA.P - Post by User
Post by
Karmanowon Oct 12, 2010 2:35pm
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Post# 17554780
Embeded or in Bed
Embeded or in BedI re-read the Dundee Report Update and in my initial excitement I did not pay too much attention to the BHP comments until now. Dundee was surprised that Allana would allow a neighbour and potential competitor to embed a seismologist onto our land and monitor our progress? Both companies have been in active discussions and have technically co-operated on Allana's drill results and Allana will share the drill results and disscuss them further on a technical basis? Dundee reckons that BHP will get involved somehow with Allana....? Neighbours share coffee they dont get into bed together unless they want more...
I am confident with the ongoing progress on all fronts so far, but my underlying fear has always been the risks of a hostile takeover by a major....at these low share prices an offer of 100% premium to the 20 day moving average would net us about .80 cents per share...way too low and would be very disappointing to the share holders that are long here and see the real underlying value of this company getting us to a production stage and deliver cash flow.
So, what to do? First, I think Allana needs to explain in the next NR why the BHP Seismologist is on our land and why they feel the need to share our technical progress with BHP? My gut is telling me that once we prove up our potash that BHP will want the whole basin lock stock and barrel. It would make sense for a major to try to keep the stock price down for as long as they can so they can offer 100% premium to a low share price.....Mr.500 comes to mind. Is there not some ill will between the Chinese and BHP over steel production? How much do the Chinese own of Allana.....
Secondly, I would like to know more about how Farhad and Company plan to structure future J/V and Financings to reduce the ability for a hostile take over. The devil is always in the details. And remember that Argentina get added to any hostile takeover with no benefit to shareholders.
I hope I am reading too much into this, but I just dont get the warm and fuzzies knowing BHP is alittle closer than I would like. When our share price is at the $2 -$4 level I would feel a whole lot better.
Karma