Eshmun You are making a lot of assumptions here. First of all...

Eshmun

You are making a lot of assumptions here.

First of all how long in a piece of string? - re SP, traders involved shorters etc etc

I agree and have always said DLS, Brad and his team are quite capable to do this alone and the only reason to merge is that DLS receives a hefty premium.

Bashing DLS into BPT is not my favourite option because I don't think, based on history, that BPT are the best company to manage DLS assets. They have already proven themselves to be money wasters and obviously didn't understand the risk going overseas.

I am sure that Brad, who has been through this before, is well aware of what the outcomes can be and he of all people will be preparing and ensuring that the shareholders get the best possible deal. I believe there are things yet to be discovered about DLS.


I think this will be a battle along two lines if it plays out, the Stokes deal and Kerry will be making the rounds and the calls, and those who want DLS to go it alone to realise their full potential unless the price is right. There is always a possibility of a third or fourth party stepping into this as well. At the end of the day it will have to go to the vote based on the Directors advice. Stokes isn't in control yet but I understand he brings influence now in more ways than one.

I'll be interested to see if anything happens after 3Jun when the SWM CR is resolved. They are not clear how the funds are going to be used other than to say to strengthen the balance sheet.

"The Company intends to pay down debt and reduce gearing with the proceeds of the Entitlement Offer. With reduced gearing, the Company will have improved financial flexibility to pursue growth opportunities as they arise." - not necessarily in media one assumes.

This looks like a Group initiative and everyone is being drag along into it. SGH's stake in SWM will increase to 45% from 35%

Funny how we are all expert on this but interesting to point out that until SVW stepped into the fray no one was talking about this possibility ie SVW having large stakes in both BPT and DLS, it was always BPT to take out DLS. Oh how we are all reactive and maestros after the fact.

How things have changed.

Cheers
BW
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