RE: Predatory buyer27 Jul 2025 14:21
The relatively small issue (and mcap!) here is interesting because it allows you to take quite a significant stake in the company for really not much money - my partner and I currently have a c1% holding here built up this year without really trying.
I haven't seen the volume for a predator to be doing the same this year but that can change in a heartbeat of course, someone recently mentioned that CAML would do well to take a look at this following their recent failure to secure another asset.
Also, and again, worth pointing out re timing these Copper/Gold plays - SOLG has seen monster volume this past week since the first promising "Things are moving" news from their new CEO. If a predator was drop-buying at 6s there up until now then they certainly had to pull their finger out once the news dropped as the buying was ferocious once the herd got wind of it.
The same will happen here at some point but you won't have anything like as long a time to get in near the bottom as we had at SOLG as you're talking about 1/5th of the issue.
In terms of an aggressive takeover, there's not much the BoD can do but more often than not the market takes care of the problem anyway by booming the value of the company once it gets wind of it.
That said, BoDs can, and sometimes do, deploy the Poison Pill defence:
A poison pill, also known as a shareholder rights plan, is a defensive tactic used by companies to deter hostile takeovers. It makes a company less attractive to an unwanted acquirer by making a takeover prohibitively expensive or complex. Typically, it involves issuing rights to existing shareholders (excluding the acquirer) to purchase additional shares at a discount, thus diluting the acquirer's stake and making it more costly to gain control.
Here's a more detailed explanation:
What it is:
A poison pill is a strategy employed by a target company to fend off a hostile takeover bid.
It's a form of "anti-takeover" defense that makes the target company less appealing or more expensive for the acquirer.
The most common type of poison pill is a "flip-in" plan, where existing shareholders (excluding the acquirer) are granted the right to purchase additional shares of the target company at a discounted price.
This dilution of the acquirer's ownership stake can significantly increase the cost of the takeover.
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