RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE Jonhale,
It is my understanding that as an insider, (10% ownership or more, but less than 20%) they cannot approach the shareholders with an offer unless it is approved by the board. If the valuation comes in at .35 or .50 for that matter, our board has a fiduciary obligation to refuse any offer that is inferior to this value.
If a hostile take-over was available to them since may of 2010 (when SPQ was bought out)...then why have they not excercised it, during the last 18 months. All that has happened is that KWG has made themselves more valuable while improving their bargaining position. I suspect that CLF needed KWG as an ally for a certain period of time. It just so happens that without 3P approval, that period of dependancy has stretched far longer than CLF had envisionned.
I beleive that they went after SPQ, because they were not owners of their shares and thus could launch a hostile against them. When the CEO Neil Novak, caved in, the house of cards came crumbling down. It didn't stop many of us to attempt a decenting action.
Best of luck to you and all KWG longs,
Pear3