RE:RE:Rio swaps wild goose chase,, Crazy offer
If Rio has their way on the next vote ... zip, da nada, nothing more for the public minions.
Pentwater and Sailingstone will likley abstain to preserve their dissent rights. The majorities required are only "of the votes present in person or by proxy at the meeting" and Rio wouldn't have pulled the side agreement stunt if they didn't already have those majorities, for if they could get Pentwater and Sailingstone to abstain in the adjourned meeting, it would push through.
Now maybe some additional disgruntled minority shareholders will also abstain. It only improves Rio's position at the meeting. One wonders how many shares have been picked up by approval-friendly arbitragers happy to make a few points on a short hold from the discount to offer still in the trading price.
My prediction if the deal gets approved (after the refreshed rigamarole of a new meeting, new circular, new proxies) ... TRQ gets delisted, Rio strikes a private and confidential deal settling "all matters" with Pentwater and Sailingstone, and the rest of the dissenting minority are left either to mount a Court case in the Yukon, or basically pound sand while Rio bats cleanup. It's a pretty ugly hypothetical.
I'm out now. The risk of a NO vote, however small, and a few months of dead money with the $43 cap hanging over TRQ, and maybe a price reversal after threats of an upcom8ng dilution equity raise ... I have stopped straddling the fence with ETG and TRQ and am wholly committed to ETG.
cg