(02-09-2013, 10:45 AM)CityFarmer Wrote:(02-09-2013, 10:28 AM)WolfT Wrote:(02-09-2013, 10:14 AM)CityFarmer Wrote:(02-09-2013, 09:59 AM)WolfT Wrote: I think all this takeover thingy is just a smoke bomb to halt trading, maybe to buy time or to think of ways to 'disturb' the short seller....just a feeling.
It is quite unlikely a smoke bomb, but the offer, if materialized, will create a short squeeze for short-sellers...
IndoF unlikely to pay a lot of money for Cmz. This will drag for a long time... I do not know what they are planning to do. Most likely IndoF and Cmz are together in this to do a win-win thingy but maybe not to the advantage to the rest of the shareholder...
The end result might be IndoF win, Glaucus also win, but minority shareholders will lose.
IndoF's win is paying lower for CMZ, Glaucus's win is covering the short will still costs lower than shorted price. Minority shareholders, who bought the share at high will lose.
A good learning experience, by just watching...
Well if history is anything to go by is that the aggressor doesn't give up so easily. If indofood grabs cmz with a GO, depends the market could also get jittery and perceive this a bad decision, despite official coming forward with counter arguments and documents they may not be convinced cmz is legit or maybe they tasted first blood and want more, Glaucus and other short sellers may start to zero in on indofood methinks.