Boostgold Discussion Threads

[bobthetrader] 04/3/2010 11:50

Does anyone have any information on Millennium Partners LP?

[mikey34] 04/3/2010 08:34

I'm totally against this going through.....but its damage limitation(and not much of that) for me.....in this from way back so well underwater....there must be quite a few like me.

[davidosh] 04/3/2010 01:08

It looks like one of their long term shareholder supporters has actually caved in and accepted the Constellation deal which will have surprised SZ. It depends on the other potential suitors and if one is prepared to go high enough to induce Constellation to sell now. For sure Constellation have pitched it at the right level as shareholders were getting frustrated at the time delay and that the original 33p bidder had fallen away. Once a price is fixed in the mind it is easier to use it again.

[ldmachin] 03/3/2010 21:18

Still no statement from the company... looks like the bid took them by surprise (which is worrying). Bet they are still at work now trying to sort something out to stop/derail Constellations 33p bid.

[isis] 03/3/2010 15:57

They left it way too long to get these bids in, perhaps it couldn't be helped and Constellation were always there anyway.

This has been a cheap deal for Constellation at our expense, but it happens.

[greengiant] 03/3/2010 15:53

Unfortunately the length of time that it has taken for the other 3rd parties to formalise there bids have played into Constellations hands. Obviously several holders thought 33p was a decent deal and entered into negotiations with Constellation when SZ reported that the 33p bidder had walked away.

Unfortunately for GLD, the time limit was too long and caused too much uncertainty. A shame because 33p undervalues the company.

As for a higher bid, I am sure you will see one, but it would need to be significantly higher than 33p. Constellation offer certainty of a deal being done, another 3rd party increases the risk of something going askew.

pv - I am sure you did all right :-)
dd - I will call after the weekend to discuss TND

gg

[davidosh] 03/3/2010 12:08

Constellation would probably walk away with a smile on their faces if they got 40p for their 43%. Looking back it is surprising that SZ never tried to get p/e support for an MBO in the one year breathing space he had as presumably JS would have been supportive and the cash in the company is always attractive to p/e guys who then load up the debt

[langland] 03/3/2010 11:20

Maybe CS have done this to flush out a higher bid. Maybe they would be happy with 40.

[isis] 03/3/2010 11:09

These alternative bidders have been painfully slow in revealing themselves, they cannot make a bid without taking Constellations 43.6% surely, so they would have to agree also.
Right to the end this remains bloody difficult!

LOL

[moorsie2] 03/3/2010 09:41

LDMachin - completely agree with you and believe its a strong possibility that a higher offer will emerge today or Thur / Fri. If it is only a few pence above 33 then its not worth anyones hassle least the management as they need to build bridges with their future owners. But if its say 40p then that is a whole different ball of wax

[ldmachin] 03/3/2010 09:36

Constellation have gone hostile. Board obviously not happy and preparing a counter statement, which will hopefully contain an alternative for shareholders that offers better value than 33p. Best thing now is for one of the 'other parties' to put in a bid a few pence higher than 33p to make shareholder think hard about Constellation's lowly 33p offer.

[patviera] 03/3/2010 09:11

i just sold 60 at 32.5...gg well done...i gave my 6 pct away too cheaply but at least I have 3pct(just under)of pst at around 17p.I suppose with the pound and constellations cheap stk at 25p it was a no brainer.

[isis] 03/3/2010 08:49

I don't think there is anything to stop an acquirer buying more shares in the market after the bid has been announced.

[bobthetrader] 02/3/2010 19:16

If another party came in with an offer of 37-40p to all shareholders and Constellation declined, I'm sure they would find it very difficult to convince the remaining shareholders to part with their shares at a price of 33p. I know I would be reluctant on that score.

Would it not be possible for another bidder to buy up more shares at higher price without taking full control and then putting pressure on Constellation?

[moorsie2] 02/3/2010 19:09

no question now that this was a unilateral action.

There is a chance that the company will recommend a higher offer by someone else within days!

[bobthetrader] 02/3/2010 18:51

Gladstone have made an announcement.

Take no action, wait!

[isis] 02/3/2010 18:10

Constellation will not take 40p - why should they?

This is a cash Cow they will make their money many times over and could even sell for double todays price in a couple of years.

[moorsie2] 02/3/2010 18:02

The ongoing discussion were obviously with another company and not Constellation as the 33p offer was off the table.

Therefore some 3rd party company could be very close to tabling an offer and considering all the time and effort has already been put into this then they may view it as no downside to offer say 40p. Then it would force the board to recommend the higher offer and no shareholder would accept the 33p offer.

If this does not happen quickly though then the game is up and there is no chance of a counter offer in my opinion.

Seeing that the announcement was times to coincide with the US markets opening and there was no announcement from GLD I am guessing they ambushed the company on this one

Tomorrow will be an interesting day...

[isis] 02/3/2010 17:52

Good deal for Constellation but we all had the chance to move in here. Over the years the constant slaaging of this Company has not helped the share price

CT has been particularly scathing whilst praising up huge loss makers - I tried to educate him but he would have none of it.

There is little point in rejecting this offer and watching the share price fall back to 25p again - of course another bidder would be a different matter, but I don't think Constellation would let them go - this is a Cash Cow.

As they say 'You can lead a Horse to Water.............................................

[greengiant] 02/3/2010 17:44

Wow - busy these days so not logging on much,

33p cheap as chips. I will await developments, this may force other companies hands, so until the very last moment, my 5% is still mine. If no other offers come in, then I will sell.

Cheap, but sometimes it ends up being inevitable

gg

[isis] 02/3/2010 17:15

Constellation could recoup their funds within 3 years - they are paying £18m of which they already own one third, so £12m of which GLD has assets of £7m, so £5m.
GLD were on course to make £2-£2.5m this year.

Nice work if you can get it, but everyone had the chance to buy in and people didn't want to know at 20p.

All the bandits buy rubbish like NXT (NTX) instead.

[grahamburn] 02/3/2010 16:56

Bob. Constelation would probably decline. Unless, of course, in your scenario the new bidder acquired the magic 50%+ WITHOUT Constellation acquiring any more shares before that. Most unlikely.

[bobthetrader] 02/3/2010 16:49

I was waiting for a reply to my question, but I have to go now, maybe I'll catch up with you later.

[bobthetrader] 02/3/2010 16:32

For fun, let's say someone offers 37p, do you think Constellation would decline the offer?