MHO article, page-19

Do you really want to be THAT person, mongy, spreading misinformation just so that your company, DLS, can get a few more acceptances on the cheap?

The facts are:
- Magnum will arrange a broker in the states to sell Magnum shares and remit cash to those who chose this options (minus a yet-to-be-announced fee).

And Magnum are not short of cash. They recently raised $150 million in equity. And their debt is backed by high quality acreage. The chances of Magnum share price going up (rather than down) are the same as DLS. Also, with turmoil in Middle East, we might see an appreciation of the US dollar.

Mongy, I gather you are not an AQO holder, so please let remaining holders make their decision based on the facts, not exaggerations and misinformation. I think shareholders are within their rights to ask whether directors are representing shareholders' interests in a unbiased and fair manner, hence the fact that the Takeover Panel is taking Magnum's submission seriously (rather than dismissing it straight away).

I think any remaining AQO holders would be silly to accept any offer until the court case is resolved. If Magnum win, they may still need to convert their offer to all cash and raise their offer price to secure a large chunk of AQO. If Magnum loses, shareholders can still accept the higher Magnum offer (23% higher than DLS) or go for the much simpler (but less lucrative) offer of DLS (simpler in terms tax, transaction costs etc). Even in this event, DLS might trump the Magnum bid, especially if they want upwards of 75%. It seems pretty clear that DLS won't be getting to 97% and compulsory acquisition status.

The only circumstance I would sell on-market is if I could get +38 cents, at least. This option is attractive as you get cash straightaway (but might miss out on any raised offer). Even selling on market at anything above 34 cents is better value than the DLS deal.

I suppose my simple argument to holders is to ignore the bunkem about DLS being a better, lower risk bid that is coming from the directors and some on his forum, and wait for the takeover panel to makes it decision. Whatever way the case goes, there could be some interesting moves made by DLS or Magnum. As both bids are unconditional, there is no risk (as far as I can see) of losing money from waiting.