anyone know the new creeping-acquisition laws?, page-8

I doubt that Goldman Sachs is taking an investment stance and 50% return might be large enough for them.

However, let's see. It sounds like non-stop drilling on S/L for the rest of 2010. A revised bid might well be made on or before 2 July. Otherwise they might have to pay nursery's $1 a share or more next time around. Can't see that an investment in an associate does much for their balance sheet.

What will their chairman say to his shareholders if AWE pulls out? "We thought the associate was over-valued in the Target Statement"? or "The Board was feeling bored and thought it would be fun to see if we could get the associate's assets on the cheap to boost the balance sheet"? or "We were surprised that it was worth so much and decided that we couldn't afford it".

AWE must have had an idea of what they would have to pay. AUT was sufficiently confident in values to seek to tap the market for more capital and KKR has sunk $400m into acreage and backed the operator. How could AWE justify to its shareholders pulling out now without at least matching the Target Statement valuation?

61 cents would be a cynical offer. 65 cents might win the day. I had my sights on 70c. Sounds good and is halfway between the current offer and nursery's $1. 75 cents would put it on the right side of half way between. I'm sure that there are lots of other figures that could be justified but they might shy away from doubling their first offer.