As a patriot I think firb should block this t/o. As a shareholder I would come out ahead if it executed. The really big picture is this, however: when is the Australian market going to wake up to the fact that our companies are incredibly cheap cf the ROW?
Time after time we see opportunistic bids lobbed at ozzie companies with many a board simple rolling over (self interest?).
In a small number of cases the t/o target is underperforming with the suitor believing there is untapped value in the target (eg, UGL); legitimate driver. In many other cases, its just a mater of a good income stream for the price paid (eg, TOL, DUE).
While I accept that there is invariably a premium being offered, it is still a disappointment that a target's SP collapses again if that t/o fails - even though the market has signalled the target must be worth the premium!
DUE Price at posting:
$2.83 Sentiment: Buy Disclosure: Held
