Member Info for ToS1963

Killjoy.... in a hostile takeover, “acting in concert” is really just a term you could apply to everyone who votes for the bid proposal. The better the offer, and the more diverse the book, the better the chances of success.
If there was not a diverse book, NM would not need to be frantically seeking shareholder support at the forthcoming AGM. He could ensure he gets his way with a couple of phone calls to key stakeholders.

Hypothetically, let’s says I own a family run but publicly listed company. Myself, my wife and my three children own, for arguments sake, 51% of the stock. Pretty secure, and impossible to be taken over. However, in order to expand, we decide to issue many new shares. Our holding is diluted to only 40%, and the book becomes “more diverse”. How in any walk of life will this make us more able to defend a hostile takeover? Please explain.

I view further dilution as a completely necessary evil on the path to fair value for my investment. Finances permitting, I will be prepared to take up any offered shares. But the offer price must be a reflection of what we are worth at the point in time, and at the maximum price the advisors believe will be oversubscribed. So yes Colonel..... 40p would be ok.

But I’ll say it again, 20.5p was not. Still angry and mystified by that.

My votes are in.......

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Kind regards,

Charlie Balmer
Corporate Actions
Hargreaves Lansdown
One College Square South | Anchor Road | Bristol | BS1 5HL

I have no concern with authorising the board to issue new shares, even though that means diluting my holding. However, just as I want to achieve fair value, I don’t want new shares issued at less than fair value.... like the recent 20.5p fiasco.

Zoros ... good post. I have just been exiting the board as soon as he appears, he really is a nasty piece of work.
Quady... you and I regularly disagree on this forum, but I’ve always found your opinions to be consistent, and mannerly. You shouldn’t have to put up with his vitriol, and I sympathise, and as others have said, best to ignore.

Astonishing.... can’t think the last time I have seen a company so blatantly put themselves up for sale. Here’s the link....

https://cornerstoneresources.com/site/assets/files/5534/cgp_corporatepresentation_2011.pdf

You and I both have pre emption rights. So do BHP. This was specifically outlined in the initial agreement with BHP in order to prevent them being diluted during the standstill. Now that it is over, their rights are the same as ours.

Quady.... what you, and your link, fail to take into account is that the “bidder” we are talking about here, is also a significant shareholder, with associated rights. I.e. BHP have exactly the same rights as you or I.
Try reading your link, and every time it says “shareholder” replace it with BHP.

Earthling.... absolutely. .... and as both myself and addicknt pointed out, pre emption rights would prevent this approach from diluting BHP etc. The only people to lose out would be any small PIs who could not afford to take up their rights.

Aren’t we all assuming here that BHP, Et al have no preemption rights? I’d be very surprised if that were the case.

3. Existing Shareholders and Pre-emptive Rights to New Shares

The next step is to check that the issue of the shares complies with any applicable pre-emption rights. These require new shares to be offered to existing shareholders first, in proportion to the number of shares they already hold.

These rights of first refusal over issues of new shares are designed to protect shareholders by allowing them to have the chance of preventing the dilution of their shareholding so long as they have sufficient funds available to subscribe for the new shares.

Hi Quady....
You stated that “Let's say BHP make a hostile bid, we can issue another 500 million shares to everyone else apart from BHP, at the price that BHP bid,”
Not sure that’s true. All shareholders... BHP included.... have to be treated equally. How would you like it if they issued everyone extra shares except you?
Anyway, on another point, I have been avoiding this thread for a few weeks due to our ongoing infestation problem, pleased to see we seem to be avoiding that this weekend at least. Long may it continue.

As I type, A terrifying 0.29% collapse on the DJ.

Let’s try to keep it honest.

Stuck a top up buy order in at 7.99p. Personally don’t think it will be filled, but thought I’d chance it. If it isn’t filled, quite happy with my holding anyway.

Mathersf... yes, I read that yesterday, made me think along the same lines as you. I actually posted it last night, but pleased you posted it again, as I think it probably got lost in all the unsavoury nonsense we had to endure.

Apologies if this interrupts the silliness ..... but I found this of interest.

https://news.mst.edu/2020/11/mining-students-in-ecuador/

Mrcautious just checked, out of interest.... from June 26th.... 4 months..... the FTSE all share is down about 100 points, or 0.3%. Dev is up 1.9p.... or 30%.... in the same timeframe. You are frankly talking nonsense.

MrC.... stagnant? Stuck in clay? Check the chart. 400% rise in a year. Perhaps your expectations for the speed at which you might make a profit from share dealing are a touch unrealistic?
Not wishing to sound confrontational, it’s just that I’ve been in Dev for quite a long time, and am more than happy with progress to date. Ones viewpoint is clearly going to be influenced by ones entry point. How rapidly, and by how much, does a share have to rise before you would declare it less than stagnant?

Oktoberfest was a bucket list thing for me.... was there last year for the first time. Loved it, but probably a one off for me!

I’m a lot more comfortable with the price here than I was down at 20p. Realise that is stating the obvious. Puzzling though that the most recent raise was done at 20.5p when it would only have been a matter of weeks to wait for the imminent news releases, when the raise could have been done at 30p+. That still seems strange to me.