Ann: Change in substantial holding , page-14

I think we need to keep it in perspective. The banking syndicate is buying the business outright and leaving the scraps ie Redbank fully leveraged in our hands with no value.

The first offer is never the last offer if there is significant shareholders voting againts the deal. I'm sure the bankers have done their sums and they would have left some wriggle room if the shareholders voted down the transaction.

Keep in mind they also have a great deal to loose and that is why they have actually made an offer.

If they didn't have more room they would let the business move into administration (if thats what the directors would decide) and then buy the business more cheaply out of administration allowing them to reap greater benefits.

I think they know that if it did go into administration they would have greater competition from the parties that were interested in buying the business before so they cannot afford to let it move into administration.

The realy questions are;

1. What could they realistically offer above the 10cents that on the table?
2. Can tehre be enough shareholders 25% that would vote against the deal?

As for teh size of the transactions ie 2m shares in one hit

there would be a lot of volture funds stepping in buying the shares at 9cents assuming that the vote will go through and the transaction consumated in 6 months they have made a return of gross 20%