Developing phosphate interests in the Georgina Basin, Queensland, Australia

Free
Message: When will the blood bath end?

If IFFCO take up all their share options they will still only hold about 7% of the company. They are an asset not a theat. I can see many reasons why they or someone else would love to buy the company outright. They have undertaken to buy 3 millions tons which at recent prices would cost them about 1.2 billion dollars a year. If they bought Legend for less than two years supply, say 2 billion dollars, which translates into $10 a share, they would have guaranted supply at a fixed price plus another 2 millions tons annually to use or sell. Gutnick's interests dont conflict with shareholders - he is the biggest one and I imagine will drive the hardest bargain if anyone comes looking to buy. Whether Lgdi becomes a producer or gets taken out along the way any future stock or takeover price will be way north or anything we've seen to date.

Share
New Message
Please login to post a reply