Can anyone explain were this company is heading. Is it time to bail out with a merger or will the share price keep diving?

Things are hotting up merger news imminent

What makes you say so - john50

how do u know?

MPW777.I agree.

look at trades today

check the latest RNS for the merger update

Well done john50 - was it an educated guess. Go on my son!!

Would anyone try to explain to me why following this announcement there are sales recorded and one at .63p. Is it not that case that if merger is accepted we would get 1.25p or should I read the small print.

Oakapples - you should indeed read the small print.
You get 1 MIL share for every 47.2 IAL shares that you hold. It is not a cash offer.
As MIL is diving, the offer is now reduced to about 1p equivelant per IAL share.
Presumably, institutions and shrewd IAL holders are shorting MIL ahead of receiving their stock, thus locking in value and allowing them to buy back cheaper when the hordes try to sell their new MIL shares.

Rgds
dell
All IMO, DYOR etc.

dell314 - very grateful to you - had my head in the clouds - just got my EEN consolidation letter from HSBC which has also confused me - so I think I will take a day off - thanks again

Rgds

GC-R

It is obvious that for those who bought IAL shares at 1 pence would at least treble their money if those 'new' MIL shares are sold at todays price. You see it needs FSA approval for this merger to go ahead and that may take a long time, by that time perhaps the whole stock markets may be running up again.

Dell 314 u are wrong saying that MIL shares could be shorted. MIL or IAL are not a large or mid cap company and thus, it does not get shorted. (it is a fact that brokers with CDF and Spread Betting do not deal with very volatile stock like MIL or IAL)

would like to hear more from all those IAL holders.

Xmortal the spike was short lived, but am sure there will be more to come when things settle down.

xmortal - 09 Aug'04 - 20:05 - 37 of 38

It is obvious that for those who bought IAL shares at 1 pence would at least treble their money if those 'new' MIL shares are sold at todays price.

What are you trying to say, as the above quote makes little sense?

As for shorting, you can generally short companies with a mkt cap over 25mln. Specialist brokers can arrange shorts of smaller caps for favoured clients.

Also, have a look at a chart of MIL and then check your understanding of the word, "volatile".

Rgds
dell

Dell314,

why are u negative about the outcome of the merger??? tell me the reasons why backed with fundamentals not with TA or your assumptions on shorting.

you always deramp, even in other threads. Most people who bought IAL at much higher prices that 1 pence have not choice but to hold and see what happens. There is not point now of selling IAL shares as they will be worth almost nothing.

Xmortal - IAL has admitted that it could not survive alone without further cash.
There are already loans of c. 15mln arranged for the merger.
IMO A significant amount of this will go to city leeches for arranging this deal.

Will the 15mln be converted to equity, or be debt??
Either way it doesn't seem a promising start.

Restructuring will IMO be used to justify forthcoming poor results and I'll be surprised if there aren't further requests for more cash, relatively soon.

What do you think is the bull case?
You also haven't explained what you meant in your earlier post.

Rgds
dell

xmortal are you saying even with people buying this share now will loose money,even with the merger?its all confusing to me,please give your opinions as to what could happen to inter alliance holders,for those people who bought after the news of a merger at 1p a share.will they loose or could gain?or should they bail out asap?

As IAL shareholder do I have to do anything to approve the merger and to have my shares converted into Millfield shares.

Oakesapples mentions a EEN consolidation letter? I have note received this from my online broker.

Thanks

thomsonrj - I confirm it was a consolidation letter on EEN not IAL - What we need is for someone with better understanding to read the very long merger announcement - RNS 6 Aug - and help us understand. I possibly wrongly thought (see series of earlier posts) we would get 1.25p or 5 for 236 Millfield`s

big buying once the OFFER price dropped.any news?

I doubt there can be news - buying at .60 and a little higher has much attraction provided the merger goes through. Got my consolidation letter to-day but it adds nothing to what we already know