The PE offer is obviously a low risk/low ball offer, to get things started in negotiations, the company is obviously worth way more, but first rule when buying is you come in extremely low and then work your way up - you'd come in low anyway given the losses this companies been having so you can take advantage of that with a nice cheap ass offer (especially when people are talking up administration).
What is with all this talk about administration? Just because the company had another loss, you think thats it, we should just give up? The amount of revenues of this company has, the network, logistics, customer base, etc, there is obviously a lot of value there. Furthermore the gearing is realtively low. The problem is there just not cutting costs faster enough for the falls in revenue, and I dont think anyone thought this whole GFC crisis thingy, whatever you wanna call it, would go on so long. Of course not cutting costs enough means they are well placed to quickly capture markets when they rebound (which was supposed to happen about now) but may have to wait another 12 months who knows? (I dont have access to the doom sayers crystal balls)
Oh and another thing, sure paper usage has gone down, but Im sure the world isn't going to completely give up paper in the medium term, just maybe a bit less, however there still paper to sell, so lets keep selling
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