Ann: EastLink Traffic and Revenue - July 2011 , page-6

The current price of 51c is 7% below the cash offer price of 55c.

1. The takeover offer could be pulled due to the severe drop and potential further drops in the ASX200. There is a standard out clause in takeover offers.

2. Sellers are raising cash for various reasons, covering calls, better opportunities elsewhere, no expectations of higher competing offers etc.

I bought at current price as I believe the takeover will be completed and 7+% in 3 months is a good return with limited down side. Horizon already owns 35% and the few instos making noises are simply trying to extract a better price but time will tell.

When the market price is less than the takeover offer, there is only one reason and it is that the offer is considered to be fully priced.