Noront Resources Ltd. NOSOF

RE:RE:RE:Australian Billionaire Andrew Forrest’s Wyloo Metals Beats B

[stocksleuth01]

I know some of you may disagree with me, but I will go out on a limb here and suggest Twiggy may not sell, at least not on this round. That would be about 37 per cent of the shares. Another 10 per cent are already locked up. It would likely make it a done deal at that point.

I respect RatPatrol's opinion, but in Wyloo's latest bid of 70 cents per share, they did state, “Wyloo Metals does not intend to support any alternate offers for Noront."
This was said quite publicly and matter of fact on their part.

I know they could easily go back on their word and give in, but it's also their future credibility on the line for any future bidding with which they intend to become engaged. They need to maintain some public trust to sway future investors their way in any similar bidding process. To go against their publicly stated intention to not support any alternate offers in this case would erase any public trust that they may possess going forward. It could weaken their credibility on future transactions in which they need to curry support. I question whether such a move is worth it for them here, which would render their word worthless.

If they intended to go back on their word now and throw in the towel, I think they would have hinted it publicly, thereby creating no surprise, while minimizing any damage to their trustworthiness. And if they did actually change their mind and want BHP's 75-cent bid to win, why wouldn't they hint that publicly? It would only help their cause at that point. 

And I'm thinking that if they do sell, it would actually occur in another round of tendering, not this initial round, and they would still hint it publicly.

That's just my hunch, but I could easily be wrong.

Wait till maybe tendering deadline round two or even three. As RatPatrol wisely stated, their time horizons are long, not short. And that likely goes for the bidding phase as well.