Australian (ASX) Stock Market Forum

I am launching a takeover bid

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nathanblack said:
are you really that stupid?

didnt you read the beginners forum?

open a comsec or even westpac account. they will let you buy shares without funds available.

now you just need to decide to buy as many shares as you can on market(with money you dont have) or maybe get others involved. im willing to buy $250k worth, provided i dont pay for them.

cheers

PS there may be a small dishonour fee involved, but some have had that waived for a first offence.
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That is untrue. They will let you buy shares without funds available up to a certain amount. I doubt that amount is $180m.

I have contacted another investment group called Allco. Funny their phones also didn't get answered.
 
skc said:
That is untrue. They will let you buy shares without funds available up to a certain amount. I doubt that amount is $180m.

I have contacted another investment group called Allco. Funny their phones also didn't get answered.
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try a few million first and see if they accept it, if not, lower the amount until they do. if they do accept it, put in more buy orders until they decline. maybe register for several online brokers and max out each one.

then invite a few of your closest friends along for the ride, the can repeat the process above. you may not get 100% control, but a seat on the board would be nice. might be enough to vote for a special dividend or give yourself a payrise.

after reviewing the numbers im interested in about $500k of stock, which happens to be my limit for over the phone orders with my current holdings.

have you called eddie groves? he might have some available funds and i think he is unemployed at the moment. might have to rename the company DEF though.
 
After more detailed analysis the deal is off.

Fundamentally it still works - you use the STO cash to buy out the company, and you get all the assets and the ESG "option" for free. However, I have no interest in the company - only interested in getting my hands on the cash. Unfortunately, the STO cash is just enough to buy the company out and I will have to realise any cash from asset sales, which will be troublesome.

With $172m of STO cash incoming, HGO should pay off the bond at $44m, keep say $30m in the books (enough for >3 years at current burn rate) and pay the rest out as a special dividend. That equates to ~$0.25 per share.

So I think a better course of action is to pressure the board into making a special dividend from the windfall before they pxss it up the wall.
 
I was still up for $1M for my new copper mine. I will probably just have to take them over myself and sell it to a holding company with a dodgy name for $1 now.... I just saved $999,999!
 
doogie_goes_off said:
I was still up for $1M for my new copper mine. I will probably just have to take them over myself and sell it to a holding company with a dodgy name for $1 now.... I just saved $999,999!
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FYI they don't actually have a mine. They only have copper in the ground and plans on paper.
 
What a short term outlook you have - I was going to get out there and dig it up myself and start a smelter in the Adelaide CBD.:D
 
skc
there have been plenty of net-nets in the market of late. I bought into Facet Biotech (FACT on nasdaq) which is trading for around half of it's net cash. It is painful waiting for the market to realise the situation and seeing management continue to hoover up and waste the cash. (I'm not saying that is what HGO or FACT mngt are doing, but it is often the case.)

I've only had a quick look at HGO and I see the CEO takes home around $550k a year on top of his 5% or so holding in the company.

You should pursue your plan of pushing for a special dividend. Corporate raiding is not good for the soul. Use the force, but do not succumb to the dark side.
 
This posting is for general discussion only....if anyone is seriously thinking about takeovers to reap a small fortune I suggest you research the following.

1.) Master Corporate Raider - Sir Ron Brierley, he is the King of takeovers. Very successful.

2.) Alan Bond - very successful until it all caught up with him eventually. His early success that propel him from a ten pound pommie migrant to a billionaire is complusory reading for any inspiring corporate raider.

3.) Bell Resources - Robert Holmes Acourt. Read his failed takeover bid for BHP. The minnow nearly succeeded in capturing the whale. Bell resources eventually failed in the bid and Bell itself became a takeover target and was eventually taken over by Alan Bond. Holmes Acourt losted his fortune and died early, a broken man. His wife Janet took over the family business and became a very successful business woman in her own rights.

Anyone planning to raid a cash rich Company to siphon off the cash and leave the dead wood behind must research this case. Note....many people involved in this scheme went to jail.

4.) Warwick Fairfax's attempted takeover bid of Fairfax newspapers. Warwick is also known as "the man who couldn't wait". The money would have been his sooner or latter when his mum Lady Fairfax dies but he could not wait and launch a very expensive failed attempt to gain control of Fairfax. Malcolm Turnbull first came into prominence through his involvement in this case. He represented the junk bond holders. The other banker (I forgot his name) fees for advising Warwick was $50 million in 1987 dollars.
Warwick now lives in the USA in comparatively less wealthy circumstances.

So there you go skc....plenty of home work for you this weekend.
 
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