takeover target, page-12

I would never say never, and am definitely no expert - but wouldn't it be a big deal for UGL (market Cap 2.5b approx) to take over TSE (market Cap about $1.5b - maybe need to offer $2b?) IMO.

I guess UGL could easily acheive it using borrowings, equity and cash. However it would be a huge undertaking. Since they have been expanding internationally, and the AUD is at a high level, wouldn't UGL look at some international businesses instead? I imagine there would be some businesses in the US that are overgeared and for sale. Also in the US, there is the possiblility of a lot of privatisations, as various governments need to flog off the family silver. UGL (and TSE for that matter) might find opportunities there in the resulting wheeling and dealing.

TSE (and related parties) also have quite a stake in TSI, which seems to have been quite capital intensive.

Is the SP (suddenly) going up because TSE has won some big contracts recently, and the market is buoyant?

Or is it insiders trying to make the cap raise happen? (bearish for SP if so)

Is there something I am missing? I'm trying to work this one out.