takeover, page-3

I rather doubt whether a takeover is a realistic proposition, as Stuart Elliot (EWI) holds close to 50% of the shares and is unlikely to sell his holdings for less than a fair price which, given EWC LNG proposals, will have to be in the multiple of dollars in 12 to 18 months time.

Having said this, I am rather surprised at the low share price and whilst shortselling and margin calls are the most likely explanations, it does not explain why these strategies are successful in relation to EWC but not in respect of eg. Arrow Energy or Karoon.

The overall fall in the market also cannot explain why EWC share price has lost some 85% of its value (from its high), when other comparable companies have lost less than 50% (ie. EWC share price should be between 70 and 80 cents in order to be 'on par' with the recent performance of such companies).

EWC forthcoming announcements re: amended power purchase agreement and LNG 'Heads of Agreement' (Indonesia) and half yearly financial report (all expected before end of February 09)will provide a more realistic assessment of EWC business strategy and financial position and will underpin a much higher share price.