Post by
standfir on Dec 10, 2019 1:38am
What a decent 2nd bid could look like
Any 2nd bid that's decent will have significant value per share. And such a bid could be composed of many elements, including:
- cash to shareholders
- shares in the Offeror
- debt paydown
- shares in a residual substantial piece of Core
- etc.
Suppose we somewhat artbitrarily decide a 2nd bid were valued at 60 cents / Core share. That could be any composition - e.g. 20, 40, 60 cents cash, and 0, 20, 40 cents of the other components, adding up to 60 cents, just for example. Cash is king, but there is a lot of value in the real kind of upside that a big mining company brings - Core shareholders would benefit from participating in that.
Whether such a bid is supported by the board or not - and any decent bid should be - Core shareholders will want to know what's there.