js report, page-73

Madgewick. Hi. Did Mae really get an offer of 85cps??? I havent heard that rumour. I think most mae followers would probably agree with the following- that dolly was tarted up for sale and expressions of interest obtained but as due diligence was conducted the all-important production capability wasnt available (or if it was it was such as to kill the interest previously expressed)........... The selling slate is now clean-JS is the man who has to get dolly ready again (at least the last crucial part)for a second attempt to achieve a sale....... As far as the WK is concerned he only gains control of Mae to the extent of the funds he is prepared to put up,AND the extent to which the directors are prepared to let him gain control of shares,AND what that % might be as far as the directors retaining control of mae. The figures will be somewhere in this ballpark and the 2 parties (excluding you and me) will have already set up a draft split but as issue time approaches they will reconvene and agree on the likely success of a mae cash issue,and fine tune the respective parties targets. The first thing they will do is,jointly,guess at and pencil in a figure of the natural fall-in(nfi) for the issue ( issue confined to Oz and NZ holders,cutting out US holders?- highly likely as pitching an issue in oz that satisfies the US authorities is supposed to be a COW). Dissatisfied holders binning anything that looks like it came from mae,etc.etc and not likely to subscribe?. No company,even the very strong ones like WBC,ever has an nfi of less than 3 or 4 %. Maes figure -20%,plus?... So thats 20% or so" reserved" for the WK....How much higher does the WK want to go? ...-how much higher do the directors want him to go ? What about a seat on the board for the WK? what about an embargo on the Wks shares? What about restrictions on who the WK may sell his shares to ???.... and so the discussions will continue until agreement is reached . At least with an nfi of 20% (minimum) the WK is assured of getting a decent %,and not likely to walk away empty handed. WKs of the TBP,Warren Buffet ilk are very decisive people and wont waste their time with crumbs...... The directors wont want the WK to have control,they want it . You work out what you think a WK will accept as a minimum,and the % that the directors would baulk at .........