Ann: Strategic Review, page-35

Let me tell you why they didn't hedge.

I was right on the debt, right on the refinancing, and right on the board roll.

It is because the MD has a heap of options that vest in 16 months between $1 and $1.50. If the share price is $1.50 he makes $8m.

The reason they did not hedge is that they bet on the upside. The MD was trying to hit a 6 and win the match.

That's great and to be honest if it was a private company that I owned 100% I probably would have done the same. Why not go for it.

But when you are paid to steward for the shareholders you really cant do that. Better to take a bit less upside to protect the downside.