what a fantastic soap

  1. 3,353 Posts.
    and what a drama it is, and this is how I read it.

    I have done some rough maths from the flurry of ASX announcements on substantial sh'ings etc. From what I can establish, the latest position is:

    1. Glencore control overall (shares and converted rights all in together) 35% of the company.
    2. Maitlin control overall 41% of the company on the same basis.

    The problem for Anaconda has been the Murrin Murrin nickel plant all along and the financial strife it has cuased for them. They own (from memory) approx 40-50% of this. However, Glencore (who are also Anaconda's major sh'er) also own the OTHER 40-50% of the Murrin Murrin plant independently. The whole reason for the nasty rights issue was for Glencore to effectively takeover Ananconda (by default underwriter) and therefore control 100% of the Murrin Murrin plant. The funds from the rights issue are to be used to pay off all the project debt to US bondholders in the Murrin Murrin plant (which will probably still happen).

    The problem Glencore has now, however, is that they no longer (as of today, Friday) appear to be the controlling sh'er of Anaconda as Maitlin has overtaken them with their greenmail takeover bid. This is a real headache for Glencore. There is a possibility that both themselves and Maitlin are going to have to enter the market next week to try and wrest overall control of this company. It could spark a bidding war for the shares.

    And then, if it gets really nasty, Maitlin could call a shareholders meeting to use their superior vote to clear all the Glencore people from the Board of Directors. And Glencore will fight tooth and nail to prevent this also.

    Sooo, I am keeping my rights and not selling any at all under it is clear who wants control of this company (unless of course someone wants to give me 11 or 12 cents for them on Monday, at which I would be gone like the wind). If they want control they are going to need to buy my shares.

    What a fantastic battle this is. I bought my rights at 0.3. Giddy up.
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