GREY:WFEMF - Post by User
Comment by
StockExpertProon May 10, 2013 12:16pm
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Post# 21363306
RE: RE: re buyout
RE: RE: re buyout IMC is a 100% owned Berkshire Hathaway company. Up until recently IMC was a 80% owned Berkshire company. Then Warren Buffett ordered Berkshire to buyout the remaining 20% interest. What this tells me is now that IMC is a 100% Berkshire Hathaway owned company it is highly unlikely that they would be satisfied with only owning 25% of Woulfe Mining in a joint venture partnership. It doesn't make any sense for them to only own 25% of Woulfe Mining when they could possibly buy the entire company for around $250 to $500 million dollars range. A buyout somewhere inbetween that price range is great deal for Berkshire. The Woulfe Mining tungsten assets are worth billions of dollars long term. Warren Buffett's Berkshire Hathaway paid over $7 billion dollars to gain 100% control of IMC but the problem is that his $7 billion dollar tool making empire at IMC is worthless without a steady easily acessible long term supply of tungsten. In my opinion a buyout of Woulfe Mining is very possible. In my opinion $375 million dollars for Woulfe Mining would be an exceptable buyout offer. That would equal out to pocket change for a multi billion dollar company like Berkshire Hathaway. I think this is very possible. If Woulfe Mining receives financing from the South Korea bank in the near future and they take the project into production then the buyout offer would have to go way up. It makes more sense for IMC to buyout Woulfe Mining now before the company goes into production but perhaps they might wait until after the company goes into production in my opinion.