something in the air, page-23

This just arrived in my inBox. (not my thoughts just something that got sent to me in the last few minutes.)



Thought you might like this little clip from the Eureka Report:


Mosaic Oil (MOS): Mosaic reported a couple of weeks ago that has received a bid from AGL Energy for 15c cash or AGL scrip. AGL has also offered Mosaic shareholders a share-based alternative of 1.01 AGL shares for every 100 Mosaic shares. Mosaic has said it wants to look at the bid and interestingly, AGL has declared it final straight away which means they cant increase their price. Mosaics board urged its shareholders to accept the $123 million cash takeover bid last week. This deal is particularly low risk as it wont raise any FIRB or ACCC concerns.

The best thing about this deal for shareholders is that it offers you a free call on the AGL stock. You can buy the stock at 14c and if the share market goes up in the next few months, you can choose to take the AGL shares. On the other hand, if the AGL share price hasnt risen, you can just take the cash. I think this is quite a good deal, its a friendly bid with very few regulatory issues. So theres extremely downside and the potential for a significant upside. Thats a deal I think is very much worth looking at.