dio recommends avoca's increased bid 1 for 2.3, page-7

Good argument, but I disagree with your 80% example.

As long as AVO has over 50% of the company, it technically is in control of the company and can nominate the majority of the directors and will trade normally as a normal ASX listed company. Eg. OZL had 51.8% holding in TOE, until recently it reduced their holding to 49.9%.

But if AVO say owns more than 70% of DIO (but less than 90%, which is necessary for compulsory acquisition). AVO will still be in control of DIO. Nearly the whole board will be AVO nominees with probably one independent non-executive director. This company will still trade on the ASX with very illiquid volumes and chances is the SP will be really depressed. Eg. ITT is (I think 81 to 83%) owned by HGO. HGO previously attempted to takeover the whole company, but failed to get 90% at the same time did not increase the offer for the remaining small number of holders.

Cheers,

Rich