I agree with you and if I was offered around 3.50 I would be...

I agree with you and if I was offered around 3.50 I would be running to accept it. I just don't want contributors to get hung up on issues thinking that we are all negative I am trying to balance the value equation with the simple logic of assuming that because MQG are accepting equity that that in any way supports the view that NAV is the value. They are just trying to cover the bases:

1. If we accept cash , then all those people critical of us will say the share is not undervalued at 2.30.
2. If we accept equity what are our risks. Virtually nil as we are already earning more than our net mgnt fee for 2009 and at present distribution levels securing our great mgnt fee of 2008.
3. This way we dont have to worry about mgnt bonuses as that becomes the problem of all equity holders.
4. This clears the way for an external offer as they just have to offer EV less some discount and the NAV will drop by the issue of these 150m shares as the EV wont change.
5. If the unitholders accept this we win and they lose but they cannot say that as we are accepting equity.

I believe an offer will come in the next 12 months and it will be north of 3.00 but MQG will have taken about 30c out of the offer as the share pool is bigger by 5%

I really want unitholders to look at this deal and see what is being proposed and reject it. dont get hung up in trying to debate a value for the equity just say is this in the interests of equityholders. Yes to get rid of the mgnt agreement but no to the price being asked.