A White Knight for Mosaid?The problem with hostile bids is that if brings focus on the takeover target and the possibility of starting a bidding war for Mosaid.
I sincerely hope that this is not going to happen. We recently had the case of Equinox attempt to takeover Lundin and in turn they became a target of China's MinMetals. Barrack Gold (white knight) came to the rescue of Equinox.
We are all also familiar with Zarlink and their current attempt to find a White Knight to rescue them for a hostile takeover. We are praying for a White Knight to bid up the price for Zarlink and this may soon happen.
Further there is always the immediate discount of share price of the bidding company. I hope that the market will see the added value for Wi-Lan and instead support this bid by 'upping' Wi-Lan's share price.
I don't want to rain on the parade but the market is based on potential opportunity and we may find ourselves becoming a takeover target (unless there is a poison pill in the Shareholder's Rights of Wi-Lan). Wi-Lan's SP is very low at 7.09$ and this very low valuation would leave Wi-Lan with a Market Cap of 865.44M$ and they may instead become a target if the price falls today because of the takeover bid. If, on the other hand, the price rises we will be on easy street. My fingers are crossed on this move by Wi-Lan.
I am long on Wi-Lan and I am praying for the best.