may reach the 3.50 target

0900 [Dow Jones] STOCK CALL: UBS says Sigma's (SIP.AU) lowball bid for API (API.AU) is a strategic move forcing industry decision, with upside from the process for both Sigma and Symbion (SYB.AU). "We expect a more competitive bid, and note that with Arrow revenue synergies, SIP is likely to be in a position to offer a higher bid than SYB or non-incumbant bidder," it says. Notes sale of API's retail operations and synergies could support A$3.50/share bid, but leaves limited upside for acquirer. API last trade A$2.71. (SVM)