Noranda Income Fund Unit NNDIF

Vote calculation

[Bwrbhk]

In order to defeat the Glencore takeout, we need 18.8 million votes against the proposal.  Since the announcement, 3.7 million shares have traded and the new owners will not be able to vote their shares and the selling shareholders have no incentive to vote.  Therefore there will likely be 37.5-3.7=33.8 shares that will be eligible to vote.  The dissenting group own about 8.25 million shares or 22% of the priority units and they will be voting against the current proposal.  We need 33.8 x.501=16.9 million votes to defeat the proposed takeover.  That means we need 16.9-8.25=8.65 million shares in addition to dissenting groups shares to defeat the proposal.  Should be a piece of cake.

[Scotch12]

I interpreted the PR to mean that, we just need a simple majority, or 50% of the non- Glencore unit holders who actually vote.  Not 50% of the outstanding non Glencore shares.  Anyone else have a different view? It states in the press release, "(ii) a simple majority of the votes cast by holders of the fund's priority units and special fund units after excluding votes from

[Eric1212]

" Required unitholder and court approvals: The transaction will become effective only if, at a special meeting of unitholders called to consider the transaction, it is approved by (i) 66 and 2/3 per cent of the votes cast by the holders of the fund's priority units and special fund units voting as a single class, and (ii) a simple majority of the votes cast by holders of the fund'

[Scotch12]

Good post Eric.   I believe that Glencore made the offer because they hate the idea of losing control of the board.   It may be hubris, but I think the market has it wrong (hence the 1.40 share price).  As does the TD analyst who says the dissident shareholders have no leverage.  If they take over the CEZ board it will create tremendous leverage. I suspect Glencore

[schocor]

The $2.1M break fee is nothign to Glencore; but it is Noranda shareholders who have to pay it if this deal is voted down.  I am curious to know who has been selling shares at the $1.40 mark; these folks who are BUYING those sahres will get a vote on the director change which requires 50% of ALL shareholders (including Glencore). I am voting no to the $1.40 offer and voting for the new

[ljp0101]

This is probably right. Glencore is happy if they get the vote goes through, which it won't. And if it doesn't pass then they're happy to push through a deeply discounted rights issue and blame shareholders for anything that goes wrong. Win/win. Break fee is neither here nor there.