Incitec Pivot Ltd T.IPL

RE:RE:RE:RE:RE:deal drags on

[Albatross]

Brookfield is going to hang onto their shares in the short to term ie >1month and probably a lot longer than that. This whole take-over bid just indicates to me that they just wanted a bigger piece of the IPL pie, because they know IPL has a lot of potential. Why would they just get of it?? Even they wouldn't be able to say straight faced saying that their offer(s) of $16.50 to $18.50 for the whole prize is fair.

Yes, depending on the terms of their agreement with whatever institution they borrowed them from they can hand back and cash in on the increased value of their cash backed total return swaps (9.99% of their IPL shares) that they are probably paying a decent rate (LIBOR + x%) for. But the thing is that has no effect on the markets, because they wouldn't be selling them on the market they are just handing them back, but I imagine they wouldn't do that because they probably went into a long term agreement for those swaps.

The market will do whatever the market does.. The important thing to remember is the fundamentals and see if they are changing, and in what direction, then buy and sell accordingly.