Ann: AOE Increased Unconditional Offer for Pure E, page-13

re: Ann: PES: AOE Increased Unconditional Off... Stocktoe

We had talked about this AOE- PES upgrade offer 2 days back in case u missed it, read notes below.

Looks like the group huddle with Shell has paid off, for the time being ($7.16/sh or $891m).

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There are only 2 things that can happen for AOE-PES,

1) Upgrade the offer from $5.39/sh (Bid of $670m for 124.37m shares)
2) Withdraw the initial bid, if can't match BG's bid of $6.40/sh (or $796m)

To do the first part they need cash, as per their qtrly they have $297.28m cash. Shell gave them $707m. So there is scope of increasing their bid unless they want to pull out.

BG on the other hand have learnt a lesson with the ORG failure, so they are factoring in a premium. They paid 80% premim for QGC & are offering 115% to PES's last traded price. Shareholders can see that BG is a better option.

AOE need to think fast & real quick.

About time they got off the group huddle with Shell.