GREY:PGDIF - Post by User
Post by
ekimon Jul 19, 2018 12:43pm
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Post# 28339291
Accounting 101
Accounting 101At this point it is all about the money.
De Beers deals for Chidliak at $107 million and walks away with a $12 million tax credit for Gahcho Kue. Net spend = $95 million.
Will they get it for that price? Or be forced to match an offer.
Why would anyone bid higher if they think they will just get matched by De Beers and walk away with a waste of time?
Assuming all NDA are now off. Gone. Any entity can go out and buy up the shares of PGD in this huge liquid event.
Then they can go and try and bid for PGD and if that fails, De Beers will pay them profitable money for those shares they just bid on. That is the benefit for a white knight.
Anyone who remembers the other Baffin Island economic deposit and what happend there?
An american came in on the open market and bought a bunch of shares then made a bid for the company. Arcellor mital bid them up and it started a bidding war. The american was the smart money because they could have walked away anytime and taken the cash direct from Arcellor's wallet. In the end, they decided they liked the project so much, they made a JV with Arcellor.
If you think this can't happen here...you are smoking something.
If you think this will happen here...you are smoking something.
It is all pure speculation with no one the wiser on the retail size.
I would love to see the list of names on the buy side of the 22 million shares today.
It will contain arbitragers, speculators, but will it also contain white knight entities?
We will have a few days of huge liquidiation, huge volume before it settles down and then see where the action moves to.
White knights don't need to rush to the table to bid.
Some need board approval (The rio tintos, etc.)
Some don't. (The washington groups, etc.)
The fat lady has not sung.
LONG...PGD
EKIM