Tan­zan­iteOne bid stymied

Finweek English Edition - - Thecompanyyoukeep -

JUST A QUICK NOTE to record that the ploy by Tan­zan­iteOne’s board to block the bid from Pallinghurst as­so­ciate Gem­fields, which I dis­cussed last week, suc­ceeded. The scheme in ef­fect places con­trol of the com­pany in the hands of the board.

Gem­fields had ten­dered for 30,8m shares – which, with the 13,7% it al­ready held, would have taken its stake to 50,1% – and re­ceived of­fers for 39,8m, which would have taken it well above 60%, but had to drop the ten­der. That shows what share­hold­ers wanted – yet the board claims it was act­ing in the com­pany’s best in­ter­ests.

What time-serv­ing – but job-sav­ing – hypocrisy.

Now just watch the Tan­zan­iteOne share price col­lapse as – like Lon­min dur­ing the Xs­trata bid pro­posal – it was only pro­tected against gen­eral mar­ket malaise by the bid fac­tor. It’s al­ready back at 28p (against a pre-bid 25,5p) against Gem­fields’ of­fer of 42,75p.

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