West. Coal Share Discussion Threads

[peterblok] 12/1/2011 22:22

I'm all out now Guys. Thanks for your company; I enjoyed the ride over the last five years. Wish my other holdings were like this one..... Interesting that my sale of 15250 shares at 815 didn't show up.

[papillon] 03/1/2011 20:43

WLT should continue to do well Sammu considering the potential loss of coking coal output due to the Queensland floods.

[sammu] 30/12/2010 15:19

Well Walter is up about 30% since the price that the conversion was worked out at. I don't know if it is possible that the conversion rate could change to reflect this.
Otherwise this highlights the good deal that WLT shareholders are getting.

I sold some of my WTN holding and bought some WLT to replace it. I wish I had done that with all my holding at the moment, but there is plenty of time before the deal is finalised so we'll see what happens.

[baht] 29/12/2010 15:16

I see WTN's asset holding of 45% of XTR has increased by 45% (approx £5mil) today to £16.7million. Its a shame the earlier Cambrian suggestion of paying these shares as a dividend to Cambrian holders came to nought!

[cottlet] 24/12/2010 19:30

eeny try NYO

[kombimatec] 23/12/2010 15:43

Today I calculate if we could swap all WTN shares for WLT they would be worth £9.11. Am I right?

[rs2ooo] 22/12/2010 22:59

Hi eeny.

Hope you are well, and seasons greetings.

GBP:CAD still falling heavily.

[high park] 22/12/2010 18:07

Has everyone sold out?

[rs2ooo] 16/12/2010 21:34

Re: This post:

RS2OOO - 5 Dec'10 - 12:30 - 988 of 999 edit

-----------------------------------

I closed out the GBP CAD trade last night for 452 points. So although I sold my WTN early missing out on the bid premium, it goes to show that there is still money to be made if one looks a little deeper that just the stock merger.

In fact, I've never actually made so many points in one trade before, and although I'm flat now, I think there is further downside (GBP Vs CAD) to come as Western wont have exchanged all of the currency in one go.

[oilbagger] 11/12/2010 00:37

Biggest WTN shareholder Audley gives his say on Walter WTN deal

[oilbagger] 10/12/2010 23:26

Looks like market is pricing tightly a 70% cash 30% share distribution

Cash contribution at 70% is worth CAD$8.05
Share contribution at 30% is worth CAD$4.05 (using Walter price of US$117.24, exchange rate of 1.0094 and 0.114 Walter shares for every WTN) so 30% of 0.114x117.24x1.0094

giving a total of CAD$12.10 against a closing price of CAD$12


Interestingly if you were able to get all your WTN shares converted to Walter shares each WTN share would be worth CAD$13.49

[oilbagger] 09/12/2010 18:32

More reaasons to hold onto Walter shares




Also is Warren B interested in coal stocks ?

[oilbagger] 08/12/2010 12:30

Looks from the buy and sells today that the majority of sells are smaller numbers of shares while the few buys are large e.g. 85k and 25k shares.

Makes me think that some in the know see value ( either from another bidder or the long term value in Walter shares) and are happy to accumulate from the small private investors

[oilbagger] 08/12/2010 01:23

There was an article in the independent on the demand for coal from China and India and Walter's takeover of Western got a mention. I found an online version

Looks like coal stocks could be the place to be so I will be opting for the Walter shares or alternatively a rival bid would also be attractive.

[lasata] 07/12/2010 08:20

OB:

All it said:

"Questor still holds out for now as there is some speculation that a counter bidder could emerge"

[oilbagger] 07/12/2010 01:02

lasta thanks for the clarification. Did it say who might be interested in Western?
Coal companies are on the up as outlined above so its worth holding on to Western in the sort term for a rival bid or at least on the coat tails of the Walter share price which reached an all time high today (up over 4%)

[lasata] 06/12/2010 22:51

OB:

No yesterday's Sunday Telegraph

[oilbagger] 06/12/2010 20:16

lasata are you referring to this article



If so, it is a few weeks old but nonetheless there is still a chance; the strength of coal could make others take a look.

However, in the short term WTN shares will be driven by the Walter share price which have risen today on the back of strong demand for coal stocks.

[papillon] 06/12/2010 19:41

It's definitely looking that way lasata.

[lasata] 06/12/2010 11:02

Sunday Telegraph

Questor:

"some speculation that a counter-bidder could emerge"................

[rs2ooo] 05/12/2010 12:30

On 2nd November GBP:CAD got hit quite hard and broke major support.

I actually entered this trade and remain short, and then it dawned on me that £3.3 billion worth of GBP and USD must be sold in order to buy the CAD necessary to acquire WTN.

At this stage I don't know whether the GBP:CAD sell off on 2nd November was related to the WTN purchase (I hope not as I remain short).

I'm hoping the sell off was a front run, in which case, there could still remain some trade-able short opportunities between these currencies as Walter begin purchasing CAD.

[oilbagger] 04/12/2010 18:44

The value of a WTN share currently is equal to

30% of CAD$12.64 (Walter share) + 70% of CAD$11.50 (cash offer) = CAD$11.84


If anyone wants to take 100% cash they would be better selling in the open market and get CAD%11.60. They could take majority in cash and sell the Walter shares but this seems like hard work.

[waggle] 04/12/2010 09:17

oilbagger the market agrees with you at a closing price of 11.60, glad that i have only sold 25 out of 65!!

[oilbagger] 03/12/2010 23:48

Walter shares as expected reacted well to the news closing up nearly 5% at US$110.52
At this price the offer is worth US$110.52*0.114*1.00380=CAD$12.64 per WTN share (£7.95) against the cash alternative of CAD$11.50. Hence if Walter shares keep rising or at least maintain current levels you will be lucky to get 30% (this is the maximum share allocation as part of the deal) of your shareholding in Walter shares.
My current thoughts are to go for the maximum share allocation of Walter shares.

Note the US and Canadian dollars are roughly equal ( 1 US$ = 1 CAD $1.00380)