Renaissance wrote: kade1 wrote:
Hi Stocknews101
Its really tricky to guess what bidding may do to the final takeover price...but.
If we say that a group willing to spend US$750 million on a Silicon plant that would save them $82% on production costs of Solar Silicon, and would reduce the Carbon footprint to boot, they could buy HPQ for US$710 million, and build the plant for US$40 million and get low carbon and 82% discount on the cost of Solar Silicon production.
US$710 million is about $5.64 / share with todays numbers.
There are many more advantages to Purevap as well, since it has demonstrated the capability to produce metallurgical grade silicon from Quartz of ten times lower purity that todays systems require. This lowers the cut off grade for all Quartz properties world wide, so Purevap reactors would be sought after by many producers not just Solar silicon producers.
Not sure where the bidding will start or end, but in the end its not going to be less than US$4/share in my honest opinion.
Kade,
Considering Purevap's potential to disrupt the entire silicon industry, I'm thinking that a take over offer at $4 or $5 per share would be too low. Even though they would have to submit it, I'm hoping HPQ's management would refuse to recommend such an offer, and I'm praying that share holders would reject it.
If / when commercial production is proven, and management seems very confident Pyrogenesis will succeed to do it, a take over offer would have to be much higher than that, and nothing forces share holders to accept an offer before this step is accomplished, doing otherwise would be a waste of a tremendous opportunity.
In the meantime, there could be business opportunities, i.e. ; a production/distribution deal for the Asian market, like the one with the Taiwaneese group but with better conditions for HPQ. Another one for the GCC region, we know someone from UAE has already shown interest in HPQ. And why not also a deal, in North America, with Hydro Quebec that has already mentioned their intensions to invest in solar panels production. That would help HPQ bring this technology to fruition faster and with less dilution than if they try to do it all by themselves, while putting pressure on major players, if they do not want to become obsolete, to make take over offers that would be worth considering, and maybe start a bidding war.