jakeGood points! To ensure a vote against the merger its...

jake

Good points! To ensure a vote against the merger its important that as many shareholders as possible attend. Holymagimon posted on "blocking a scheme of arrangement" on 24/10/09 .. here's a relevant extract:

Under a scheme, in order to obtain 100 per cent of the target, a bidder needs a majority of shareholders by number present and voting at a general meeting who represent 75 per cent by value of the shares present and voting to approve the scheme. By contrast, under a takeover bid, the holders of at least 90 per cent of shares must take positive action to accept the bid before the outstanding minorities can be compulsorily acquired.

This is very interesting. There are 2 parts to this, the 2 parts being:

1st part: the MAJORITY of shareholders PRESENT BY NUMBER at the General meeting have to approve, and

2nd part: the shareholders who approve have to have 75% BY VALUE OF THE SHARES PRESENT to approve the scheme

So, if enough shareholders go to the general meeting and the majority of shareholders present vote against the scheme of arrangement, then the 2nd part of the requirements will not even have to be considered, and the scheme of arrangement will be dead in the water."

Not sure of his source of info or its veracity. Nevertheless its worth attending!

I agree though that from what OXX has said to the OIP directors if they don't postpone there's a very goodchance of a court challenge to any scheme approval next week.

H