Kellett.
It appears that kellett has been buying stock, or better said, controlling a larger block than 10% without disclosing. Regulations require public disclosure of 10% or larger ownership. Kellett has disclosed 19.9 %. after the fact. “Gaining control without paying a premium” says to me, buying control at current stock prices does not represent “fair market value”. We have discussed “fair market value” and is important to recognize value. This is not a tactic to increase stock selling price, it for reasons like this, to know the value of BAJFF.
Hostile takeovers tend to buy shares on the open market until “control” over the company is obtained. Suppose a takeover company was to “offer” Baja Mining a price of $6.00 a share, for control of BAJFF, stock holders would vote, and may vote to sell at that price. This would be paying a “premium”, for the stock, a standard takeover.
BAJFF has an incentive for holding down the stock value, tax being just one. The problem with this practice, you invite a takeover. Stockholders knowledge of “fair market value”, for stock price, helps management maintain control over more shares. If we understand BAJFF’s value, we won’t sell our stock when copper price drops by $0.50, we will require buyers pay a premium. If BAJFF would start a campaign to show stock value more clearly, price would shoot up and there would be less opportunity for a takeover. Is truly a bitter/sweet decision.
If Kellett was to obtain control, their vote would have a great impact on BAJFF. Control is everything, and there are many ways for Kellett to transfer wealth from stockholders pocket, to their own. The “premium” could be paid to them, and them alone, for voting to sell.
The “upside” in this development is that someone is willing to try. Meaning, the value is seen by others, namely Kellett. Control is power, power in this case is money, just remember, it’s our money.
Regardless of the amount of stock you hold, VOTE. Call your broker and you will receive a “control” number. You can go on-line to proxyvote.com input your control number, and vote. The control number has the encrypted number of shares you hold, and your identification.
Carl
AI
