street talk afr-rival bid coming, page-26

Hendrous,

I fully agree the electricity generation business (including the developed gas) is worth about $1 per share. It's generating about $200mm pa rev now.

But don't forget the CASH. Cash at 30 Dec plus outstanding Shell cash plus Shell milestone cash on LNG FID, all up perhaps 70 cps.

Therefore the offer is only about $2.70 ps for Qld gas in the ground, AND development, planning and permits etc to date, plus the value of final Shell milestone payments.

Even the short sighted, not looking for the next WPL, must see $4.45 too cheap. And I bet they are planning on taking more of AOEI from us.

EL