market is saying...higher bid coming, page-16

sloeb and jsjessy,

As someone who sold today, my rationale is as follows:
1. I received a 30 cents premium to the BG offer and I get the cash now (well Friday) instead of having to wait a few months.
2. PES has had a very good run from sub $2 prior to the AOE/BG action. Both AOE and BG will have their M&A teams running their metrics on PES. A $10 price is a 400% premium - AOE/BG boards will start getting nervous about being seen to be overpaying.
3. For strategy reasons, AOE may not be willing to drop the 90% acceptance condition. Given AOE has no chance of getting 90% with BG's blocking stake, this may be enough to make AOE decide not to increase the value of its bid. If AOE does not bid, it is still a winner - picks up a huge premium for its PES holding and collects some break fees.

Obviously, I could have taken a wait and see attitude, but if AOE does not increase its offer, the price will drop below $6.40 pretty quickly and I would lose out. I reckon $8-$10 is dreamland stuff, but only time will tell.

Good luck with the hold position