Hold vs Accept vs Sell on Market, page-17

It’s not a silly question at all. Fortunately, all holders should be covered under ASIC regulations. Any higher price negotiated with a fund / large holder should benefit all other holders.

Regulatory Guide 9: Takeover Bids has a section specifically covering “The minimum bid price”. RG 9.149 states the following but you may wish to review the entire section for further clarity since your interpretation may differ from my understanding:

“The ‘minimum bid price rule’ in s621(3) provides that a bidder making a takeover bid must offer consideration at least equal to the maximum consideration that the bidder or an associate provided, or agreed to provide, for a bid class security under any purchase or agreement during the four months before the date of the bid (pre-bid purchase).”

There are rules for determining the value of pre-bid non-cash consideration. Regulations around collateral benefits are also clearly defined.

RG will also need to comply with the 3% creep rule although there is of course the possibility that at that stage he may already be at 87%.