inside business, page-26

Hi DavoMagic.

Many thanks for your reply.

You asked me what am I talking about. What I am talking about is that if AOE directors assesses that its in shareholder interests to sell out then they will (in my opinion) find Shell to be tough negotiators.

I didn't intend to imply that Shell were looking at the past when making this bid. To the contrary, I believe that they are looking to the future by trying to secure as much resource as they can. What I am saying that the years that they have been in business through good and bad times makes them tough competitors. This does not imply that they are the same "animal" as they were in the past. In my experience companies can't survive if they don't change. And Shell certainly has. On this point I am in full agreement with you. But that doesn't mean that they are no longer astute business people.

I didn't say that AOE is not capable of running a gas business. I don't think that this is the issue. I believe that the issue is what is the best outcome for AOE shareholders. This, in my opinion, means that the task before AOE directors is to do their best to ensure that AOE shareholder's interests are best served in an objective and rational manner. If it means rejecting Shell's offer (revised or otherwise) or accepting it only time will tell at this point. I just hope that the decision is the right one for all of us.

I doubt that its just a simple question of yes or no to the Shell offer. In any negotiation to buy an asset, the potential buyer will generally come in at a lower price than he/she expects to pay. The seller would typically then counter with a higher price that he/she hopes to get. The parties would then attempt to close the gap until a mutually agreed price is reached or the parties walk away. I'm not privy to the Shell/AOE talks. All I'm doing is speculating what is going on based on involvement in other deals. I could be wrong.

For the record I do not own any Shell shares.