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.
With a powerful September quarter performance, the ASX-listed South African coal miner is defying both the investor gloom pervading the sector and fears that its home country is too risky a place to do business.