In adversity lies opportunity and some deep-pocketed investors have recognised that, like the Stone Age, the era of coal won’t end overnight: coal remains Australia’s second-biggest export and output is increasing rather than shrinking.
Every so often you see a corporate transaction that looks like its straight out of the 1980s. In those days you had loose regulations and highly leveraged entrepreneurs. Today the equivalent is the takeover of Universal Coal (ASX:UNV) by Terracom Limited (ASX:TER) which sees a private equity style takeover offer exploiting a regulatory loophole. And once again the real loser could be the vulnerable retail shareholder.