ccq takeover, page-16

Article in The Age today about the takeover.

http://www.theage.com.au/business/it-takes-two-to-contango-20110923-1kod3.html#ixzz1YjuDQvCt


'Investors in CCQ also complain that the takeover price doesn't take into account the accumulated losses of $47 million, which generates tax credits, giving the company a post-tax NTA of $1.77.

What all this means is that at least one key shareholder reckons this thing is being sold for a song, and its true worth is in the region of $1.20 a share. This is based on the value of the tax credits, the NTA, and the company's $745 million or so in funds under management.

Wilson Asset Management owns 19.9 per cent of the target CCQ. According to its principal, Geoff Wilson, the 90c a share bid benefits CTN shareholders at the expense of CCQ shareholders.

Wilson estimates that based on CAML's net profit, CTN will reduce its investment management costs by 0.75 percentage points a year. �Over time the saving to CTN shareholders will be significant,� says Wilson.

The market does not see it this way, however, and is not pricing in a higher bid. In reaction to the bid, the target CCQ's shares spiked from 70c prior to the announcement and now trade at 90c, in line with the bid. In contrast, the predator, CTN's shares also trade at 90c, but are down 15 per cent this month.'