Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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I'm sorry TBTT but this is far from conclusive and pardon the pun but there may be a sting in the tail ...
If you actually bothered to read it TBTT you will see that there is not a rejection but is advising shareholders to take no action until it has evaluated the offer. I think you are reading what you want to read...
Goodnight All !!
"Cornerstone shareholders are advised to take no action in connection with the Hostile Bid until the Board of Directors has made a formal recommendation to shareholders. An independent committee of the Board will consider and evaluate the Hostile Bid, with the assistance of financial and legal advisors, and the Board will make a formal recommendation to shareholders and file a Directors' Circular within 15 days, in accordance with Canadian securities laws."
In agreement Colonel, that is why I think we have an interesting year. So many ways this can play out, but NM and Citi, can defend low ball offers, and unless we get full value or near to it. We become more valuable month by month. To me the current share price doesn't matter, as this will obtain reasonable value, one way or another. All the best.
There will be another bid I think which they cannot refuse ,plenty of time before 13th October imho so lets get on with drilling and updates and funding for mine and other things .......
A bit of history here, please someone correct me if I am wrong. NM had nothing to do with the ENSA agreement. This was done when Andrew Martin was Chairman of Solomon Gold, before becoming Solgold. So ENSA was created, with the idea that if Alpala was successful, then Cornerstone would profit, but Solgold would not be giving away too much. However things changed, and they realized that this was an opportunity not to be missed, and that they could become a mining company. Andrew Martin departed, and Nick Mather came in. The story changed, we were going to become a mining company. We must remember that ENSA was written, when we were going to sell it. I believe that the way it was drafted was luck, and neither side thought we would have the position we have today. Interesting year ahead.
Hi Smickster!
Here is Cornerstone's official response. It's a little more polite, but it's equally decisive in its rejection of the Solgold bid.
http://www.cornerstoneresources.com/s/NewsReleases.asp
Goodnight all!
Hi Colonel!
The owners of a publicly listed company change every day that it is traded. So how could any agreement rule out a change of ownership at Cornerstone TopCo PLC level? It's not possible.
And how else do you explain such a firm, bridge-burning, (even utterly contemptuous) rejection of Solgold's bid for Cornerstone?
IMO, agreements are already in place behind the scenes. I can't see any other explanation for the facts as we know them.
Tiger, I get your point re the mocking but if it was a full on rejection surely that would of been released already?
Maybe Cgp are just checking they have this right.
Hi Colonel!
But Cornerstone can be taken over at Topco level and retain all their rights to Alpala.
If I were planning a bid for Solgold I would want to quietly take out Cornerstone first, as a stepping stone towards my final objective.
That I believe is what has already happened here. But the deal is not ready to be publicly announced yet.
And that is why Cornerstone have so mockingly and contemptuously dismissed Solgold's offer.
Tiger, is there anyway Cgp can get around this?
It seems pretty conclusive.
Thanks all for inputs, certainly makes for an exciting few months.
Interesting Tiger, I agree that a concert group could be a threat to a cheap takeover. But what happens, if NM is successful, and we acquire Cornerstone. I suspect Cornerstone shareholders, will be asking questions.
Smickster, I'm inclined to agree with TBT's analysis.
Hi Smickster and All!
My guess is that Cornerstone already have a confidential but legally binding arrangement with a major to sell their company to them at a certain date in the future. A decent lawyer could frame this option arrangement so that it wasn't in breach of BHP's no bid agreement with Solgold. I can't see why else Cornerstone would reject Solgold's bid so emphatically and contemptuously.
I'm guessing that the major concerned is BHP and that this will be unveiled in October.
I'm thinking that one autumn morning we will wake up and find out that BHP own more than 25% of Solgold's shares (their own stake + the Newcrest stake + Cornerstone's remaining shares), and that they are bidding for the remainder of the company. My own opinion is that such a bid will probably succeed. And, indeed, that it is in the best interests of all shareholders that it should succeed. Alpala is way too complex and expensive a project to be left in the hands of Solgold's current management, who are not fit for purpose.
A couple of caveats: 1) It could turn out to be another major, not BHP. Or is could turn out to be BHP + Newcrest in a 50/50 JV. 2) Outstanding drill results from a new target would change the picture. At the least, it would force up the bid price.
Whatever else, I'd be shocked if the eventual bid was at less than 40p per share. So that's a putative 100% gain over a 4 month period. And without much downside risk. That makes this an attractive trade to me.
Good evening smickster, if you hold CGP shares, what would you do ? I don't hold stock in CGP, but if I did I would take the offer.
Addicknt, what options do you see Cgp having once they reject this offer?
Reassuring to know, so the real question is ?
Why the hell are Cgp doing.
This situation reminds me of something I was involved in the 1980s.
At the time I worked in the corporate finance department of a merchant bank. One of my clients received a hostile approach and a very pompous and arrogant man at Lazards, who were acting for the bidder, demanded my presence.
He proceeded to tell me my client had no chance. Sadly for him he hadn't done his arithmetic. We already had support from over 60 % of shareholders and it was obvious the bid was doomed. His bubble of pomposity burst and he spent the next 10 minutes grovelling. It was the easiest defence I was ever involved with.
The difference here is that NM knows they have over 50% support. This begs the question; what the hell is he doing?
Agreed Colonel, as the Solgold share price increases, We will acquire Cornerstone.
Mr Sangha is correct, although the difference between him and I is that he says 20 years; I'm able to say 40 years.
A lot of the big holders of CGP don't seem half as calm as our Nick! If i didnt know better, I would say " they're looking a tad crestfallen" Looks like the pressure is irking one or two of them!
GLA.
If Cgp sell out to NCM or BHP or both surely this is still a positive step for us even though not the one we would like?
Hi Quady!
I agree that he is annoyed. Not so sure about him losing the plot, though. It occurred to me that perhaps he is in on the plot.
I think I can see said plot's outline, but I could be just imagining things.
Good evening Tiger, sounds like he losing the plot, and is annoyed.
This is one brutal way to reject a takeover bid...
“There is no cure for stupid. I have never seen a more pathetic hostile [takeover[ attempt in over 20 years. It’s obvious that the SolGold management team and board will be replaced soon and it will be long overdue,” said Bob Sangha, a mining investment banker who owns almost 20 per cent of Cornerstone and is its biggest shareholder.