North American Palladium Ltd (New) PALDF

Potential of competing offer

[Westcliff47]

Brookfield have twice indicated they have no real concept of the value of NAP. Once when they sold 5 million shares for $13 and now accepting an offer of $16 for the remaining 48 million shares they still own.
However in order to observe minority shareholder rights they agreed to Implats offer when Implats said they would pay minority shareholders $19.74.
If another company was an interested party in making a competing bid why would they offer Brookfield more than $16 per share? They could go after the minority shareholders through Brookfield and increase the offer to the minority shareholders. Brookfield has to consider it as under minority shareholders rights ( CBCA & OBCA) they would be deemed to contravening the Act if they didn’t.
What that increase might be would be up to the new bidder but it would mean they have a chance of picking up the company for say an extra $20 million more than Implats were prepared to pay.
Now if that new bidder was smart and had been picking up shares cheaper than $19.74 (600,000+ crossed today) then if Implats upped their bid well that would be good for all of us and for whoever bought those 600, 000+ shares today. Also if they were a mining competitor to Implats it might seem to be a way of making them pay more.
I am not a lawyer so there may be holes in this argument but it ups the potential of a competing offer.

AIMHO