RE:RE:RE:RE:REJECTED!!!SVM doesn`t get this deal or doesn`t take some kind of pay out then expect this whole thing to end up before the courts for a long time .
Wayne, you raised a very interesting scenario - SVM, the likely loosing acquirer taking GCM to court alleging that GCM manipulated and influence the 3 party merger. For a starter, one of the biggest ever civil damages in Texas resulted from exactly the same facts - a bona fide suitor was nixed when the eventual acquirer talked the acquiree to walk away from the signed deal with the bona fide acquirer.
If this is the case, than indeed GCM could be in big trouble.
However, there are distinctions that make the current M&A soap action even more entertaining.
One, SVM, while registered in Canada is a China-based miner will all operations in China. This is important when the court seized with the case rules on the differences between China-owned enterprises (SOEs) and SVM.
Two, I am sure you are aware of the controversy involving Chinese state own companies listed in NA markets. While not all of them are in the same category, the vast majority of these SOEs are financially strapped and badly in need of US dollars. For most of them, listing in the NA exchanges is for no other reason than raising much needed hard currency which enable them to buy US-denominated commodities.
So, the really interesting question is this - how will a Canadian Superior Court, in this case, the Superior Court in British Columbia, rule in favour of a company which fit the profile of a Chinese SOE or defer to another Canadian registered, but foreign-owned private company GCM?
I would say that in this case a lot of political considerations will be involved with the outcome far from clear.