Break Fee and Takeover OpportunityWRG has claimed their $25m break fee from the failed friendly takeover offer in the Spring. WRG has 74m shares. If someone bought control at current prices of $1.18/share, 51% control would cost 37.7m shares x $1.18 = $44m. That would allow a buyer who owes the break fee to terminate the break fee and avoid paying the $25m. So they would get control of the company for $44m - $25m = $19m.
Yes, I know. They would never get enough investors selling at $1.18 to achieve 51% control. But the break fee plays in the future of this company and the potential for takeover as some price.