anyone know the new creeping-acquisition laws?, page-19

After chewing over it for a few weeks I've sent a formal complaint to the ASX re paragraph 6.4 of the Bidder's Statement:

"AEL will review the benefits of and the suitability of Adelphi remaining listed on ASX having regard to the ASX Listing Rules and the additional corporate and compliance costs."

This is in the situation that AWE gets control but fails to get 90%. It is a statement of intent.

I cannot see that as anything other than a bid to intimidate. Cancellation of the listing would remove liquidity and communication obligations. They are saying "Sell to us now or you may find yourselves stuck in this investment" subject to what the unexplained ASX rules referred to actually say. Even if the ASX rules require the bidder to purchase shares offered, shareholders lose the freedom and objective valuation benefits that a market of willing buyers and sellers provides.

I expect that there is some rule that permits them to make a statement such as that but, frankly, it has no place in a pretence of a level playing field.

I don't suppose that it will get anywhere. However, if any of you feel that the prospect of holding shares in an unlisted subsidiary would coerce you into accepting a price lower than that you would settle for if ADI remained listed, perhaps you, too, could let the ASX know of your concerns.

Remember, if you decline the offer and AWE then uses the control that it might acquire to delist the company's shares, it will be changing the nature of the investment you now have and it will be a detrimental change. As we are nearing the time when an increased, serious, offer might be made, it needs to be clarified whether we can just consider the money offered in the context of prospective value and operational risk, or whether we have to take account also of this possible change in the nature of our investment.