Could the current black out be because the RE3 numbers were acquired earlier than we thought? Say early Feb.
If the company was in posession of a material fact they would have to release it within a specified timeframe. I dont think the FS is done at all and I think the NR was the truth. Everyones dealt with a company thats dropped the ball before...I dont think this is any different just a lot larger and a lot more anticipated. Management and Teck cant just run around with a FS denying its existence.
That being said I also dont think Teck will act before the FS is out. As of 2009 there were new rules instituted for "buy side shareholder votes". HudBay Minerals proposed an acquisition of Lundin Mining and the OSC stepped in and imposed a shareholder vote on the acquisition, even though there were no applicable rules at the time to this effect. This has since changed. Ironically when the OSC did this the shareholders of HudBay REJECTED the potential acquisition.
Therefore I think Tecks going to probably have to vote on the acquisition. Any institutional holders in Teck will certainly have proxy advisory firms giving them advice on how to play their cards in any given buyout.
Buy side shareholder votes also require evidence that they are not overpaying for the potential asset.
In my eyes....Schaft Creek is too big and is going to cost too much money for Teck just to step out and act. I think their acquisition will be a little more drawn out than that and I think theres going to be a lot of discussion, legalities and notarizing involved.
Teck can drop the expenditures very quickly.....whats $300 million to Teck? Theyre a $50 billion dollar company. I dont think theyre too worried about shelling out this kind of cash for all the future profit theyre going to be recieving from it.
They get 75% of Schaft Creek for peanuts. I dont see any reason Teck will turn down billions of dollars of net value for this paltry chunk of change. They can then buy the remaining 25% and vend out a JV with another company that gets all their money back and has the other company paying the production costs. Not a bad deal....50-70% of ownership in Schaft Creek for either free, or very cheap.
All in all what Im saying is I think the delay is caused by the actual reasons cited and not management and Teck colluding behind the scenes. When the FS is ready....Teck will probably make use of their 120 days to put it out to their shareholders.
Matter of perception here.......why would Teck put a 120 day clause in effect on their own contract?
1)To force themselves to act at CUU's behest?
2)To give them time to get all their ducks in a row with their shareholders after they review the numbers and ramifications of an acquisition of this size?
Rogue.
Personally I think 2 is a lot more logical.
