Wednesday, 2 March 2011

Wishy Washy

So we finally have an announcement,  As far as I can make out, a Whitewash waiver  is one more usually used in Hong Kong and Singapore, although it has been used in the UK. It asks for permission for the entity (MBTH in this case) to buy more shares, whilst avoiding the mandatory trigger of a takeover - whatever the other shareholders wishes may be, or whatever the takeover provisions may state.

So what we have here is one major shareholder (presumably Bohman) is playing hard ball. (Good on you Johan). He's agreed that 50m more shares can be allotted, but has demanded certain conditions be met. We don't know what these conditions are, but they probably involve Johan getting lots of cash. So Mooers is trying to go for a Whitewash to avoid paying the cash to Johan and the other shareholders. Sneaky. Underhand. Devious. 

It's possible that this route is fraught with legal pitfalls and bear traps. More news when I've done more research into it.

They say another announcement will follow. Baited breath.  

In other news...
Palmi is suing the central bank of Iceland