RE:Next week ! (Eldorado)M2,
Your post says: "Eldorado will buy 25% of Integra by investing, (25% 30m shares @ .70 = $21m)".
I am trying to follow your math but it does not seem to add up.
- Assumption: 25% = 25% ICG total ELD stake, after the addtional investment (also OS is assumed to be ~450M shares).
- Currently ELD has a little less than 15%, ~ 67.5Ms/OS~450M= 14.06%. It will need to buy a few more share to maintain 15% (say 1% of 450M = 4.5M share @ ??? for ~$3M)
- You were talking about 30M @ 0.70 = 21M shares in addition to what ELD already has. So, 30Ms/~450Ms = 6.7%OS.
14% (or 15%) + 6.7% = ~20% (so where did the 25% come from?)
May be it's too early for me to do the math.
BTW, why increase to 25% at the risk of being subject to more stringent requirement (e.g. creeping take over?). If they want to their own director to be appointed, would 20% be enough? The other thing is that ICG probably has enough money for now...They would need to chew up all the FT money before year end?
Cheers,
GH