Hard to get enthusiastic about voting for the deal when the independent expert comes to the conclusion that the schemes are not 'fair' (??!!), but are 'reasonable'...
Methinks Entree will need to sweeten the offer considerably to make sure it gets over the line. If they don't, they risk another bidder emerging and only needing to offer 'fair' value to trump them. They also risk missing out on picking up PacMag at a bargain price due to the PMH shareholders rejecting the current low-ball offer on the (very understandable) basis that it is 'not fair'.
The PacMag directors are on pretty shaky ground here unanimously recommending a bid that is deemed 'not fair', whilst making no attempt to seek a better and/or improved offer. It's worth noting that the deal will only succeed if there is at least a 75% majority of votes cast in favour of it at the meeting. Certainly not a done deal at this stage by any stretch of the imagination ...
Rgds, W.
PMH Price at posting:
29.5¢ Sentiment: None Disclosure: Held
