Post by
james2001 on Aug 24, 2011 1:05am
here is my take on the situation
severstal cannot do the nord gold ipo unless hrg is trading at a value which would support the value they
place on nord gold.I believe that would be somewhere in the neighbourhood of $3 per share.They were also
told that because hrg is aprox 60 per cent of nord gold that they must really consolidate hrg.so the chance of them
taking this stock to 3 plus a share without consolidating is unlikely.In the meantime the funds and the largest minority shareholders themselves can block the consolidation attemp.so If I was in severstal I would keep the shares trading as low as possible without bringing too much attention to this stock and continuing to make buyout offers to
the smaller minority shareholders. so this action might intensify in the next couple of months.after gaining most of these shares they will negotiate withe the funds and largest minority shareholder seperately to see at what price they are willing to part with their share and finnally buying out these funds.THE QUESTION EVERYONE MUST ASK THEMSELVES IS AT WHAT PRICE DO THEY WISH TO SELL OR DO I WAITE TO SEE WHEN THE FUNDS SELL BECAUSE THEY WILL GET THE MOST FOR THEIR SHARES. In the meantime dont fret days like today because as you can see they are trying to scare off as many small sharehoders as they can and accumulating as many shares as possible before the buyout offers start.
Charles if you read this could you please comment. thanks