Today's RIU, page-59

I know PE has been done to death, but just a friendly reminder that if we win the case we will not magically be gifted an extra 35% of the JV. What we will get is 'declaratory relief' that we have (or rather had) the right to buy it from COP on the same terms as WPL were offered.

To be sure, a favourable outcome will be positive to FAR, but the company will look rather different if they get it.

I make no pretence to pretend to know what will happen or how these things work, but that is how I understand it.

So if we 'win' the 'rights' to purchase for US$440M, where does that money come from? Say, for example, a TOTALLY huge player with deep pockets wanted a piece of the action. If they offered to stump up the cash which we then use to acquire the asset, what would they want in return? If they expected us to sell them back some of the JV%, wouldn't that then also be conditional on PE? If they wanted scrip, we couldn't do that much without approval of shareholders, and that would dilute us to five eighths of the bugger all we mum and dad type investors have already, and reduce Farjoy to a much less than blocking stake paving the way for said TOTALLY huge player to TOTALLY take us out.

Could be a case of careful what you wish for. It might be a delightful looking cherry, but it is a big one we could choke on.

(Damn I'm good with metaphors today.)