Kellett v. Baja, no winner yet...
Let’s take some time and look at the Kellett/Baja dilemma.
There has been considerable discussion, let’s have some more.
The majority of stockholders voted to keep Baja management by a narrow margin. Not because they think Baja Management is honest and doing everything right, No.
Most of the large holders are functioning around the premise, “better the devil you know, than one you don’t”.
Baja management is interested in producing the highest possible stock price, in turn, they themselves will become wealthy. Upper management holds a large number of shares, and are not wealthy men and women. Baja worth $ 10 -15 would make them so, and many of us along with them.
Kellett has invested 80 million dollars securing control over almost 20 % of the outstanding shares of Baja Mining. Then lost the last proxy vote by 1 percent !
Here is the way this car goes off the track.
Kellett finds another interested mining party of make an offer to buy out Baja at say $3 per share. Baja is required to pose this offer to the shareholders. Shareholders, including Kellett only need to convince 1 % to switch their vote and adopt the buyout for Kellett’s “new” buyout. After all, we all make $ 2 + in the deal, right !
Kellett now takes Baja private. Kellett with its worldwide system of Goldman web, finds a copper mining company,( if this has not already been done), and sells the “worlds 5 th largest copper mine” to a third party for its “ true value” of $ 10. Per share.
Kellett sells the deal, pays 3$ to us, and sells Baja for $10.
Now some might argue we all made $2 + for our trouble, this is true. But Kellett made $7 and has not taken any risk at all. Myself and others here, have spent years doing research and considering possibilities of this company. We do have large share amounts however, we worked hard for the shares and don’t want to see it taken away.
I expect to see $10 per share before this is over.
I personally believe that we will see a buyout offer prior to production. From the new buyer’s point of view, the sooner the better. The closer to production, the higher the offer must be to interest the stockholders.
Baja needs to get the price of Baja up around $ 4-5, to secure the company from a takeover.
In this particular shareholder climate, I believe the stockholders would except a $3 offer, only need one more percent to go over to Kellett’s side.
Carl
AI
