Ann: 2015 Trading Update and 2016 Trading Outlook, page-3

Nat

In my opinion the recent price increase is due to the market warming to the PHG takeover bid, and nothing else. That is especially so given the flat earning guidance just released by VEI for 2016.

The indicative price of the scrip-only bid is 88 cents so, until now, with the VEI share price being lower than that the market has signalled that the bid will fail and that PHG will not increase its offer. But as the VEI sp increases that negative sentiment towards the PHG takeover is clearly waning.

The agreement that PHG has with its advisors to pay commission if acceptances reach 50% shows that PHG will he happy with a less than full acceptance of the offer.