Whether you've got a BPT takeover of DLS or a merger arrangement...

Whether you've got a BPT takeover of DLS or a merger arrangement between the two or just a long term investment by SGH in both companies, the fact remains that when a party like SGH starts buying shares and it becomes public the share prices of these companies will likely rise in response.

The SP of each company is being led higher by SGH's view of the value of each company and the potential that the merged entity could bring. Prior to SGH’s involvement the market had another view of the value of each company.

I suppose what I'm saying is that you should also consider this when coming to your own view on the values of these companies whether individually or in combination.

You should also ask yourself this question. If the management of SGH is so sharp and had a tactical plan in place to buy low why did they miss the bottom of the market so badly. Is the answer that they were just making their investment decisions on the fly. After all a newspaper article posted here a while back even went as far as saying this. The oil and gas sector was reported to be in third place on the shopping list. You can see the recent lengths they've needed to go to, to resuscitate their flagging media business. Now if they have so badly misread an industry that they have been integral to for about two decades what makes you believe they somehow have the jump on the market as late comers to an industry that has been watched over by oil and gas professionals since oil and gas was discovered in the Cooper.

Just a perspective so no need to attack the messenger.