Jeffy the discount is silly but they will pay about $10m in tax...

Jeffy the discount is silly but they will pay about $10m in tax or about 30c/share. This should come back around to shareholders as franking credits but we won't be able to claim them until the end of 2010/11 (as the div can't be paid any earlier than 1/7/10.

Fully diluted they will have about 34m shares on issue as LD will exercise his options but he will tip in $900k to do this.

EME will trade lower once the GUD offer closes so the market is discounting the EME holding.

There is always perceived risk that the company doesn't return all the assets (which is not a correct perception).

There is the risk they spend the money on something dilutive.

The real reason they are soft is that there appears to be an order from at least one party to close their position down to $1. Assuming they paid 30-70c prior to the offer it may suit them to close and reinvest elsewhere.

The next qtrly should give some guidance on how EME/ALY will be distributed.