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Bullboard - Stock Discussion Forum Western Wind Energy Corp V.WND

TSXV:WND - Post Discussion

Western Wind Energy Corp > Brookfield buying?
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Post by agrossfarm on Dec 12, 2012 11:51am

Brookfield buying?

So far, no SEDI report of Brookfield buying. 

They have a week to report from the time they buy, so their activity can only be monitored in hindsight.

It would seem to me to their advantage to buy the 5% they suggested they would in their SEDAR filing. But they did not promise that they would. 

There are about 25 Market days left before the offer deadline set by WND to be a week before the Brookfield deadline. To get that many more shares in the Market (as opposed to by private transactions like they got the first large tranche), buys would have to average 140,000 per day, every day the Market is open. In the last week, only 188,571 shares were sold on the average day, so an extra 140k would be obvious. Daily average YTD is just under 160k per day, although when the stock is moving up fast, like in the last month, an average of about 312k volume occurred (keeping in mind that none of the volume in the last month was Brookfield based on the lack of SEDI filings unless it occurred in the last few days).

My guess is that, if Brookfield starts to buy, they will be forced to move the share price noticeably higher and it will be due to the increased buying over and above the general public and arb demand. Perhaps they have a dilemma:

1. Will they want to save themselves money (if they are the eventual buyer of WND) or make themselves money (by tendering to a high offer for WND) by buying $3.5 million?

2. Will they not buy any more shares because they think that the lower the WND share price, the better their chances for buying WND at a lower price?

And given that the Brookfield group is huge, I wonder whether other parts of their interlocked network of companies may be involved in the WND Market, without technically giving Brookfield Renewable, the actual official bidder, "beneficial interest".

Comment by Bull-Roar on Dec 12, 2012 12:55pm
If B/F is prepared to raise their offer to say $3.00 . . . then any shares they can buy at less than $3.00 is to their benefit. If the sale is completed to another company with a higher offer than B/F at $3.00 then they still make money. Any shares that B/F can buy on the open market at less than what they are prepared to offer as their highest bid is to their benefit as that would effectively ...more  
Comment by peter75 on Dec 12, 2012 1:09pm
brookfield can not through its other holdings back door shares as you suggest That is law, nor can they have example td bank act on their behalf and hold them down by dumping stock on the market as an offset
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