About three weeks ago, Sundance was on the news again. This time was about insider trading. Top executive of Hanlong Mining in Australia was alleged of trading Sundance's stocks with the possession of material information. While ASIC is doing its investigation, Sundance and Hanlong said that they still doing negotiation regarding the takeover.
Few days ago, Hanlong increased its original $0.50 per share offer to $0.57 per share. This offer wins the board approval. Sundance Resources board has endorsed an improved $1.65 billion takeover from the Chinese.
Hurray..NOT.
I do not know what happen, but despite $0.57 on the table and over 600 points rally in the Dow (and probably 5% rally in ASX), Sundance Resources' share price continue to slide on a depressing $0.445. No rally, and definitely no jump. When the whole ASX market up by 3.5%, Sundance down 2%. To make matter worse, the sell side of the depth always over 100 millions more than the buy side.
Market manipulation perhaps?
And what about the chinese media that already published the takeover price of $0.57 one day before it announced officially in Australia? Is that why the share price climbed up quickly to $0.43 few days before it announced?
Obviously a lot of shareholders are not very happy with the offer. But over 120 millions of shares are offered for sale is a bit ridiculous to say the least. I wonder if Hanlong is permitted to buy from the market at this level. This will give them a chance to mop huge chunks of the company for a lot less than what they are offering. But if they are not allowed, are they allowed to buy through proxy and using their long arm related companies to buy..?
With this (sort of) market manipulation theory, can anybody do something about it..?
Or should we buy more of Sundance shares and hold it tight until next year for $0.57 per share cash?
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