Yesterday’s news release from KWG was a little evasive, but we should not be surprised that it was followed by another this morning. However; this is not the news.

When I was re-reading yesterday’s NR, I found it unusual that KWG would be taking a defensive stand in support of their previous offer. It seemed to me that SPQ should have made a comment of this type based on their review and DD of KWG’s offer. Today KWG tells us that SPQ concluded the CLF offer was superior ‘within one hour or less’. These semantics are important.

On the surface it would appear that Novak & Hamelin are not taking a leadership role in reviewing these offers adequately for our benefit. Although I think that they are both out of their league in this transaction with CLF, I also think that KWG Frank has been demonstrating his prowess and driving the negotiating process; hence the CLF tactic to remove KWG from the deal and their threat of SP attack against KWG.

Novak & Hamelin were likely coached to dismiss CLF ASAP after the presentation of their offer without discussion of material facts beyond the content of the offer. Today’s NR mentions the KWG “Special Committee”. These are the guys that may or may not have completed the assessment that CLF wanted squashed.

Support for the merger is apparent and CLF’s reacted with their phone campaign to measure this. CLF’s knows the lay of the battlefield this morning. This war will end at 12:01 ET on July 6. The business hours between then now and then = 6 today, 8 tomorrow, and 8 on Friday. With Canada Day on Thursday and Independence Day on Monday, this is it. No doubt there will be a little extra effort invested by CLF & SPQ & KWG over the weekend between beers and hot dogs, but this is it for NR’s

The next 20 business hours are going to be fun. “The Special Committee of KWG, with the assistance of its financial and legal advisers, will continue to consider what steps to take as a result of the foregoing determination.” The NR says STEPS as in more than one.

So what’s next?

A halt late today or first thing tomorrow and a public presentation of KWG’s offer.

Open on Friday with another halt prior to noon with a final offer from CLF. Both KWG & SPQ will remain halted through to the end of the day.

Frank and Neil spend the weekend pouring over the final CLF offer and KWG ups the ante just enough to match & surpass

What do you think?