Ann: Becoming a substantial holder, page-6

so now.... watch this space. I wonder if it is worth our while to ring in and winge to the API switchboard.

"Shareholders at API in late push for a higher bid
M&A arb fund Harvest Lane Asset Management is trying to score a late win at Australian Pharmaceutical Industries.
Two weeks out from the scheme meeting, where investors get to vote on Wesfarmers’ $1.55-a-share bid, Harvest Lane Asset Management is rallying support for Wesfarmers to raise its offer, and it’s not alone in thinking there may be grounds to question some of the assumptions used in the deal’s review.
Harvest Lane, which owns just under 1 per cent of API’s shares on issue, sent its clients a research note this week, arguing some tweaks to Grant Thornton’s assumptions would have pushed Wesfarmer’s $1.55-a-share bid out of the ‘‘fair and reasonable’’ turf, making it very difficult for the API board to recommend.
It questioned Grant Thornton’s use of the $90 million to $95 million normalised EBIT range in valuing API. While not ‘‘unreasonable’’, the number left out cost-out initiatives (such as closing some Priceline stores) and did not account for return to normalcy in recent months, it argued.