Share Acquisitions, Confidentiality Agreements and Genuity
posted on
Oct 24, 2007 10:26AM
I don’t have access to the data room and I haven’t seen the ARU confidentiality agreements but the ones I have seen have clauses that specifically prohibit the companies that have signed the agreements from acquiring/trading a position/shares in the company either directly or indirectly through a proxy, during the period of the agreement. It is probable that Genuity is acting on its own to build up a position in anticipation of an acquisition by a former client or as a means to attract potential buyer in using their services during a takeover of ARU or that they are working for a major that isn’t seeing the data. Normally a data room is only set up for a month or so when an acquisition is imminent. In this case we are dealing with an abnormal situation in that many of these majors have been seeing the data emerge in real time for over a year. As such they have been modelling the deposit from day one and for sure have better and more complete data then us. The release of the resource calculation would have been something that they would have done for themselves already. As to when and how ARU is taken out ….. It will be like dumping a bleeding cow into a pool of piranhas …. I agree with all those that have said this will be a company maker. It will not go to the nicest guy. It will go to whoever is seen as paying too much. Once it is in play it will all be over in a couple of weeks. So the more ARU drills, finds and releases the better it will be for our share value. Just my thoughts …
