Take-overs

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

Reply New Message

Prev Message Back To Forum Threaded View Next Message

Been There

Rank: President [?]

Points: 21119 [?]

Votes: 359 Score: 4.1 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

Take-overs

posted on Oct 16, 2009 01:29PM

This is my understanding of the TSX takeover rules. Maybe one of the brokers can clarify if there is a mistake.

A takeover is an offer subject to conditions imposed by the TSX and the company. If these conditions are not met then the take over fails and the pledged shares are released back to their owners. If NOT doesn't get a 'minimum of 66 2/3% of the outstanding shares if FWR' the takeover fails and NONE of the tendered FWR shares go to NOT. The tendered shares revert to the people that own them.

If NOT gets between 66 2/3 and 89.9% of the FWR shares the takeover succeeds and the tendered shares get converted to NOT shares and NOT then owns that percentage of FWR. BUT FWR continues to exist as a company with the remaining shareholders as minority shares holders (and minority shareholder rights). If Not gets 90%+ they can force the remainder of the FWR shares to tender their shares.

NOT can amend (change the ratio, extend the offer etc) the deal subject to appropriate notice and TSX approval. Similarly NOT can cancel the offer if its conditions are not met. If NOT sweetens the deal (for the same take-over bid) every FWR shareholder gets the same deal whether they have already tendered or not.