GREY:ESOFD - Post by User
Comment by
bridgetonowhereon Aug 28, 2013 10:34pm
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Post# 21705213
RE:RE:RE:premium
RE:RE:RE:premium@leverage1971 - I'm all in favour of proving up the resource, but at a certain point a major will decide they've seen enough and will make an offer. When that happens AMW and FCU want to be positioned to attract competing offers. One clean uncomplicated company accomplishes that best. The worst case scenario would have a major take-over just one of AMW or FCU and then just sit on the project and starve out the remaining junior partner. So keeping the status-quo has it's own risks.
Whether Dev has had a 55% take-out premium run past him is anybody's guess but I believe 55% implies an exploration premium which we currently do not enjoy. If he has been approached with a "proposal" I'd rather see the 55% based on a $7.25 one company price than on a $6.75 two company price. Fact is, though, Dev is a small player like the rest of us and will have a fiduciary obligation to make a recommendation but the investment bankers will rule.