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Cline Mining Corporation T.CMK



TSX:CMK - Post by User

Comment by ark88on Jan 24, 2013 1:55pm
311 Views
Post# 20885607

RE: RE: RE: RE: Strange similar feeling

RE: RE: RE: RE: Strange similar feeling

If management didn't undertake this option, they would likely face a lawsuit.

If management got an offer and rejected it because they felt it was too low, they would likely face a lawsuit.

Bates probably wants something close to $250 mil. if nothing else but to save face with a SP near a dollar.

Why would a buyer pay this? Why wouldn't they low ball. The assets aren't going anywhere. If the sale doesn't happen, they could just negotiate with the bondholders. Afterall, they just want $60 mil. plus profit back.

 

I agree with you that management will be motivated to sell. How low is the question.

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