Ann: Clarification of Dar Group's intentions, page-3

Dar Group's statement, issued on 27 February, indicated that Dar Group held 8.61% of WOR's stock and an equity swap option on a further 4.74%, meaning that Dar Group could, at its election, have a 13.35% interest in WOR.

Following on from that, I found this sentence interesting in today's update:

"On 2 March, 2017, WorleyParsons was informed by Dar Group that it reserves the right to increase its overall economic exposure in the company to 19.9% in the near term."

So, I'm wondering if this means that Dar Group has acquired more WOR stock on-market and/or has entered into further equity swap arrangements which - if exercised - would take them to 19.9% ownership of WOR.

If my interpretation is correct, then the next step is that Dar Group makes a formal offer, and if that is not accepted then Dar Group go hostile at $11.80 with 50.1% acceptance condition.

One thing is for certain, Dar isn't going to stop at 19.9%

In fact, given Dar Group woud have averaged under $9.00 for its 19.9% stake - which is significantly below the $11.80 level which we know they are happy to pay, then it means that they can pay $12.50 for the 80.1% of the company they don't own, and still end up paying only $11.80 on average.

And, at $12.50, shareholders would accept in droves.

And the WOR board would be able to save face, by claiming vindication through seemingly having secured a "sweetened" bid.

The way Dar Group is playing this tells me that they are being very well-advised.