It could be a move by PEO directors (keen to see the deal proceed) to encourage their PEO shareholders to vote in favour of the deal when it eventually comes to a shareholder vote in the next month or two...
... the loses and write down in balance sheet assets will make the MTU offer appear more attractive.
The goodwill write off may be justified more by a reduction in the 'current market price' of the assets vs. the NPV of future cash flows... as we can see P/E multiples for all businesses/ assets have fallen considerably over the past year...
Cheers John
MTU Price at posting:
46.0¢ Sentiment: Buy Disclosure: Held
