Post by
largeinvest on Sep 04, 2013 9:30pm
Usually when a Chinese company comes on in
They should pay more, especially because this is YC first time coming to our country. Its builds acceptance, trust, rapport and connections for furture deals that YC would like to do. When you come in and offer the lowest possible price you think you can get away with it make investors angry. The first deal should never be about the money. They need investors trust and acceptance to have a future in our country. An offer of $1.70 would have done the trick with a 100% premium. Is that overpaying for the assets? Well possibly, especially if the reserves were aggressively booked. Is it the right thing to do ....YES!
Lets turn the tables, lets say we are a Canadian company and we want to buy resources in China. How would the Chinese people feel if we try to "steal" one of their rare earth companies for 40% lower then booked NAV? They would probably block the deal, get very patriotic and very angry.
Someone needs to explain these finer points to the Chinese. We don't have a problem with you coming to our country and doing business, but it needs to be done in a way that is fair and we don't feel ripped off at the end of the day.
Oh and someone needs to ask NVS management what sort of pay package they have been offered. Lets say they all got 50% raises....would that bias their opinion on the fairness of a deal?