escape clause in efs bids?, page-11

Introvert,

Bit of background first:

1) At the AGM Cliff disscused the impending transaction. His comments were - while it was likely to be completed (and I quote from my notes) "this financial year?, a month? a couple of weeks?" they are covered by non disclosure agreements.

So my first point is that there is still a transaction and last week TXN was very close to completing it.

2) It is my understanding that RBS has a series of chinese walls in place to seperate what their corporate office knows from their brokers. In order for a broker to find out what is going on they have to sign all the NDA's and document what they know - after that THEY CAN NOT ADVISE ON THE STOCK. They effectively put them selves on the bench until completion.

My second point is it is my guess is that a number of the key RBS brokers that have been supporting the stock have done this.

3) None of the top50 share holders have been selling. A number have actually been buying.

So now my guesses:
The transaction is still on the table and probably very close to a conclusion. For a potential buyer to benefit from a drop in the share price - my guess is that the transaction is tied to the share price. eg last price + an agreed $ or % premium.

With some of the major supporters possibly on the bench for the duration and massive gains for a potential buyer to be had by suppressing the price the conditions are rife for manipulation.

If ASIC's new survelance teams (they took it over from the ASX last year) were any good they'd be all over this. Actually now that I think about it ... I know a lot of people in ASIC. Might tell them to take a look at it.

In any event come Friday I'll be able to see who was running yesterday's bot. Might give something away as to who was not playing nicely.