Ann: Update on Scheme of Arrangement, page-13

Here's how I see things...
If the arrangement is approved by the majority of shareholders at the 28^th May meeting then as I understand it Merck will be proceeding in their original belief they can acquire a 100% holding.

If Merck get 90% of the shares then, again in my understanding, under the Corporations Act they can compulsorily acquire the outstanding 10%... and to all intents and purposes the deal is done.

What I’m not sure about is what strategy they might use if say only 75% of the shares are offered up. It seems they have the options to either increase the offer until they get to 90% or walk away from the deal.

That said they will have done their homework so I feel reasonably confident they already know they will get at least the required 90% and those still dissenting will be acquired at $1.75 whether they are happy or not.

Interested to hear any comments or other views