Banca I.F.I.S Spa BNCIF

RE:fcc and csk

[17Digger]

You are right to worry about hte value of FCC shares if the CSK merger goes through.

FCC is halted but the CSK shares trading now will buy .265 of a FCC share, or 4 CSK buy you about one FCC making it worth about 55 cents.

As for the CO1 shares merging with FCC they are also trading lower already, and may fall further now.
Their ratio is one CO1 share gets .145 of an FCC share, or about 7 CO1 for 1 FCC
CO1 shares prices quickly fell to .11 AUS since their announcement. The fall indicates a lower value market puts on the FCC shares since their announcment, and it has time to fall more. 

So the market action shows no growth in FCC prices is predicted if you follow the market activity of its two future components.

Now examine the downside of the proposed deal

CO1 and FCC had set their merger vote meeting for 2 days after the CSK FCC vote. That is not accidental. I believe they know that if CSK votes No (and I think it will ) then their hoped for quick cash from milling CSK ore assets, and derisked Refinery title ownership are in serious jeopardy, at least until the lawsuits are settled over the refinery.

CSK can survive well with its current  mill and ore but I do not see how the combined FCC and COI can flourish without any mill, and a refinery tied up in courts because of their purchase actions while CSK was buying it this spring.

I would rather hold CSK and will continue to hold CSK for its mill, ore, assets, and legal claims to the refienry.

Would you like to hold a combined FCC-CO1, or theri shares, under the that scenario after CSK rejects the merger?  
 
In my view CSK is not just being undervalued here in this merger offer - it is being extremely undervalued. Look where it traded as astand alone company before COI made a play for the refinery and got involved in merger talk. 

Every day that cobalt prices rise so does the CSK value and CSK can mill and sell ore in the near future - the other two suitors can not.  

So you decide which one(s) you want to own and the business practices you wish to support. I already decided.