Predictive (PDI AU) & Robex (RBX AU) Together Again

• After Perseus Mining (PRU AU) fielded a scrip option for 17.8%-held Predictive Discovery (PDI AU), I questioned whether Robex Resources (RXR AU) would exercise its matching rights. I was wrong.

• Robex has “lifted its bid“, now 7.862 PDI for every Robex share. Under the revised Offer Robex will own 46.5% of the combined entity, down from 49%.

• PDI considers the new terms to be superior to Perseus’ tilt. Apparently, so do several of PDI’s largest shareholders. Perseus has now terminated its binding proposal. Out of the picture?

The Trade:

• Does Perseus reload; or roll up its shares into the enlarged entity?

• I’m leaning towards the later, implying a PDI short (if you can take down borrow cheaply), long Robex.

• However ... IF Perseus ups the ante, you don’t want to be short PDI.

• On balance, I might simply be long PDI.