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Western Wind Energy Corp V.WND



TSXV:WND - Post by User

Comment by yankee12on Aug 31, 2012 1:29pm
494 Views
Post# 20285192

Brookfield

Brookfield

I called Jeff at the office.  Here is what he said.  

 

"Brookfield bought the Goodman block.  Goodman sold to have some upside and wash its hands of potential conflict.  Brookfield is friends with myself for years. However Brookfield can make money both ways, either with a stock flip or with the one way being the preferred way and that is to buy the company and all of its assets.  It has has now bought a cheaply priced block but needs to buy the rest as cheaply as possible as is normal in business. I believe they are currently in the market with an iceberg bid at $2.31 but this is a strong guess. Brookfield knows I have a fiduciary duty to ask the highest price. I told Brookfield it must follow the law and also follow policy and formally join the process with the rest of the bidders put together in a formal queue by Rothschild. Brookfield would rather have the Board endorse a low ball floor bid put forth by Brookfield and have the Board spin a story that this is a great deal.  However I cannot do this as I would be compromising all shareholders including my big position. Brookfield then plays poker and makes suggestive hints about the proxy battle. I tell them it is a stupid move because the rest of the shareholders including the entire Board, management, close friends and family in Europe will out vote Brookfield and the dissidents 43 Million to 25 Million at the AGM. This will allow the Board to continue the sales process with Rothschild and attract the highest bidder and Brookfield still makes 50% on their money in 4 to 6 months.  However Brookfield still wants more than the 50% return on the flip and rather have the assets, so it has only one choice and that is to join the Rothschild process. It already has a chance of being the winner because it has a cheaper priced block to average down. However Brookfield may take the poker game to the AGM but their are serious risks for Brookfield. In the extreme rare chance it won the AGM the legal battle would start and the dissidents would get sued by the remaining shareholders, the regulators and the old Board for running a biased sale process to benefit Brookfield who is now an insider by virtue of its plus 10% holdings and the dissident board would be in collusion and subject to more lawsuit. In addition the WND team would quit and leave Brookfield a mess.  Bad, bad, publicity, lawsuits, damaged relationships on the projects, impairment, etc would leave Brookfield regretting the move. Bottom line, Brookfield has one real course to follow and in that course if it is not the highest bidder for the balance of the stock it will make serious money on selling its holdings to the winning bid.  Hedge funds that were initially against me are coming on my side as they need to have the present Board to prevent and not allow a creeping takeover which the dissidents will allow. This is my perception of the game."

 

I found Jeff's theory very logical and it makes more sense than ever to vote the yellow proxy.

 

Y12

 

 

 

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