Today was just the MM moving the price up so they could sell some of there shares before it goes tits up or TA at less than 0.30. As soon as the spread was 0.27 ask 0.30 bid they new people would start buying as before the spread was huge so no in there right mind would buy thus making it hard for MM to sell. At no time could I sell more than 300 pounds at the 0.27 bid. Then once they sold a few they dropped both like a stone. The only good thing today was Sefton did not issue a RNS to say rum moors about possible takeover prices being muted were un true. To be honest I will be lucky to get all my money back but for what little sum of money I have I will let it run.
You say 'If they cant pass due dulligence then a sale is the only way forward'.
Just to clarify DD is not something that a target needs to pass as such. DD is the name given to the analysis undertaken by the potential acquirer into whether or not they want to offer/buy the target. It's not something that the target passes or fails - moreover it determines at what price the acquirer would like to make an offer as the activity determines the value of the company.
The value is based on past, present and future. It is well known that SER have had their fair share of skeletons the last 6 months or so. Perhaps there are more?! Who knows. Ordinarily the acquirer would require the target to warrant historic events to limit the acquirer's liability going forward. It could well be that both parties failed to agree on these warrants, it might not be anything to do with value going forward.
I don't understand your comment ref a sale is the only way forward - it makes no sense. If the acquirer is not happy with the DD work undertaken, then there can be no sale clearly.
I put no credence in MC whatsoever. But I am not surprised by his comment today regarding an asset sale - presumably he means a trade and asset sale.
Such an approach makes the target significantly more attractive as there is no potential for historic issues to come back and bite the acquirer in the bum.
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