Ann: Investor Roadshow Presentation, page-83

Seems to me that someone hasn't really thought this whole takeover / merger thing through.

ie

BPT takeover or merge with DLS.

SVW thought at the time it would be a good idea to sink circa $240m and and $100 plus to take a stake in two companies - their stake being now worth circa $120m and $50m.

For a start, how many people, in any industry, survive making a 50 percent loss / blunder in such a short period of time. Moreover, what organisation would make a recommendation to take on any process that would then crystallise a greater than 30 percent loss assuming their preference is to smash these two companies together. With a premium touted to be in the order of 30 percent and based on a VWAP of circa $0.50, which everyone seems to think is the target, it means a takeover merger price of $0.65 which furthermore means a loss of greater than 40 percent. Even at $0.80, which appears more palatable, that's a realised loss of greater than 30 percent.

So this begs the question, what was SVW thinking? Such a big stake - wouldn't it have made more sense to take smaller bites? What's the real strategy and is it the right time to do any M&A.

Moreover, SVW being the great business people they are were surely in a position to protect their stake by tackling the shorters to some extent.

SVW had better hope they have done their sums and analysis on the POO right because right now they don't look that smart.

If a takeover / merger does go ahead, the way most are thinking, then SVW will want to see a fairly good rise in the POO quick smart just to recover the loss on DLS alone and then a major rise in the SP to recover their initial stake in both companies.

As usual we will be the last to know and most likely be surprised by the eventual outcome of all this

Cheers
BW
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