share purchase plan problem, page-40

Maybe not all is lost-I got this from CommSec today....

Further to my email of 29 June 2007, I continue to believe the outcome is unsatisfactory for our clients.
The problem which has arisen was not due to any actions or failures of CommSec. A number of sellers did not meet their obligations to deliver shares for settlement before the record date of MEO's share purchase plan (SPP). However, we have been working hard on your behalf to help develop solutions to attempt to rectify the situation. On balance, we believe that the most appropriate and timely course of action is for MEO Australia to make a formal application to ASIC to seek relief under section 741 of the Corporations Act.

The effect of this relief, if granted, would allow MEO to make an offer to the affected shareholders on substantially the same terms as the offer under the 2007 Share Purchase Plan as announced to the ASX on 13 June 2007. In particular, the issue price would be the same as the issue price under the share purchase plan announced by MEO Australia on 5 June 2007, namely A$1.00 per share. The offer would extend to affected shareholders in circumstances where the relevant shareholders were unable to participate in the SPP due to certain share transactions not settling by the relevant record date through no fault of the relevant shareholders.

We have assisted MEO in the preparation of their application to ASIC. We have advised MEO that Commonwealth Securities is willing to support their application to ASIC. We have also spoken to a number of industry bodies including the ASX, who have indicated they would support an application by MEO to ASIC.

We understand MEO lodged its application for relief to ASIC earlier today. Whether an offer is ultimately able to be made to affected shareholders will depend on ASIC's response. Please note, however, that it is not necessary for ASIC to respond before the initial SPP closes on 06 July 2007 for the application to be successful.

I will keep you informed of any progress.