Two companies bid for a diamond mine
A diamond mine decides to offer for sale and a buyer approaches them. In the process another buyer shows interest and approaches the seller.
The one company has money, the other has to first raise the funds and list on the exchange. Ideally this couldn't be bad as a DD could be done while the funds are being raised.
How is this one approached, who do you think will win?
A proven and profitable diamond mine wouldn't be for sale, therefore the sellers are desperate and will take the cash offer.
The statement says:
"In February, XX Diamonds announced plans to place the yy diamond mine in zz on care and maintenance due to poor market conditions. The firm cited the decline in prices of its diamonds from USD210/ct in early 2015 to USD142/ct by December 2016."
I was wondering if the two companies could decide to share a stake in the seller?
Depending on which side you're on. Putting two buyers together 1) Removes competition and instead institutes collusion and 2) Can make the whole deal fall apart for a number of reasons. A risky strategy. In practice there are very few circumstances in which I would put two buyers together when each could independently complete the deal.
What do you mean can make the deal fall for a number of reasons?
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