Noranda Income Fund Unit NNDIF

I am Guessing Higher Offer - Any Guess as to New Bid

[schocor]

The volume trading above - highly above - average volume makes me think somebody is expecting a higher offer. Good. 

ANy guess as to what the new offer might be? IF I recall the "accuracy Canada" estimate was $1.38 - $1.94 (or there abouts). 

Do you guys think an offer of $1.94 would get this done? 

Personally I woudl vote against it. New directors is the ONLY outcome I support.

[ZincDink]

Considering the insult of this offer, I won't entertain a new offer anyway (ok...if its $ 10, I will reluctantly turn over my shares with tears of good bye). Seriously, the last time this came up for bid, the "working" board refused an offer of almost $ 4. Lets getting a working board and they can then help unlock the value...for all shareholders.

[Eric1212]

I would too accept a 10 $ / share offer. I think this compagny can produce way more than 10 $ but "EASY" 10 $ / share is still as it's says... easy...

[Bwrbhk]

Since the offer was announced 5.6 million priority shares or about 15% of the priority shares have traded.  Starting to look like another potential bidder.  Why else would anyone pay more than Glencore's $1.42 bid?  Could be a bidding war shaping up.  Let's hope!

[ZincDink]

Last Chinese mill this size cost 750 MUSD to build and they don't have the same cheap electricity. No, I don't think a bidding war will happen though as GC has too many clauses dug into operations. More likely major shareholders think like me, GC go _uck yourself, come back when your serious

[borne2run]

<<  Any guess as to what the new offer might be?  >> My guess is that the early voting indicates this buyout offer will be rejected and the board has reached out to the dissident group. If the two sides can agree on a new price, then Noranda will issue a press release.  CIBC client was the large buyer today.

[Scotch12]

It was also a  person/entity with  CIBC account that came in late Friday and drove the price up with strong buying the last hour or two. It is hard to believe that the board/management did not realize ahead of time that the lowball offer would be rejected by the dissidents/shareholders.  But again, they are neither the brightest nor the most ethical people on earth. They did

[JCW]

I agree that GC probably have a good idea that their offer will not go through at this price but I am wondering if they might be trying to buy enough shares to have  effective control of the board for the future? I can't imagine that they would want to negotiate a price with the dissidents ...ho ho ....not like GC! I wonder how many more shares GC would need to fully control NIF? 

[rjb1954]

If GC owned 12.5MM Priority Units, they would have effective control. If only 5MM Units have traded since the announcement, and if they were all bought by GC, then GC wouldn't be quite halfway to where they would need to be for full control. The results of the vote, and more specifically, the turnout will tell all of us (and GC) how many Units would give GC effective control.

[schocor]

There is a clause in the founding agreement though; paraphrasing from memory:  If Glencore owns more than 10% of the priority units, they get to ELECT the 4 director If Glencore owns less than 10% of the outstanding units (currenyly believed to be the case), they get to NOMINATE the 4 independant directors There are about 50M priority units. So it Glencore has been able to buy 10%, then

[ZincDink]

There are about 37 M priority units (our shares) and 12 M ordinary (GC shares). The way I interpreted is that GC first must convert ordinary shares and obtain 10 percent of priority shares where they can then elect 7 of the 8 directors. Seems like the independent directors are GC flunkies anyway so we may as well say they elect the board. Not sure what rules are about warning if more than 10

[Scotch12]

Can you quote the page, from the document we all just received with the voting material, where it indicates  this 7 of 8 directors information. The whole thing sounds dubious legally. Any purchase by Glencore, management, directors etc. would have to be publicly reported within 10 days. The entire (ineffectual) board, management and I own 150, 000 shares between us and I own 100,000 of them

[ZincDink]

Page 29, paragraph 2 under the table. it says that as long as the purchaser (GC) owns 10 % of the priority units (assuming the ordinary units exchanged presumably to priority) the purchaser has the right to nominate 7 out of 8 trustees, I really think that it needs to be explained better if it goes ahead and I can't see how it is legal.

[Scotch12]

Thank you for the reference Zinkdink.  I think one really needs a business lawyer to review it (people have to do their on due diligence) .  It seems this section of the document is about the problems of finding another entity to purchase the plant.  That is there are structural issues with the current contract that gives Glencore influence over another purchaser (read page 11

[Scotch12]

As I re-read it I think they are using purchaser and Glencore interchangeably. They are basically saying the fund has no autonomy because of its contractual arrangement with Glencore.   Sorry, they don't let you edit your posts. 

[Paykel2]

I would be happy to "Guess" if they do up the Anti, it will be in the $1.65 range and I will not vote in favour of it. 

[ZincDink]

Don't expect a counter offer until late March before vote on board membership Really, we are just peons in this, the large share holders will dictate terms as long as we don't sell for table scraps from GC. What will this eventually go for? Should be over $ 10, but likely between 4 to 6 IMHO. Its a bargin below 10 and stealing below 5.