AXL cautionary - If they have got money for acquisitions, then surely they've got money for preference share dividends?
There lies a small problemos - so what if the directors buy assets with the cash and these assets then go sour - or do not have enough income from the assets to pay the Pref dividends over time - then one coudl say that the directors acted recklessly !!!!
I see some litigation coming on
Remember - the acquisition has not happened yet !!
I also saw that of the R1.8bn cash on the consolidated BS of Stangen - only R300m is in AXL - teh other R1.5bn is still in STANGEN - so they can only spend R300m !!
They also cannot issue shares - shareholders cleverly voted against this at the AGM