Ann: Update on termination of GTC transaction, page-3

I don't know whether it is positive or negative but these deals are more affected by personal relationships than is sometimes realised. GTC and Grant had been apparently talking for years and it was expected that Grant would lead the integration and no doubt there were understandings as to what would occur. This would be important to GTC as the GTC people would not have a majority shareholding. Because of the shenanigans within AFL, if reports are correct all about pay and transparency, they would now have to be dealing with Rick and not Grant. Grant, it appeared, was no longer wanted on the board.

This would have made GTC think again, and the fall in the share price was also making the value of the shares they were to be issued look miserly. Maybe GTC asked to reopen negotiations about the deal structure. Most likely they felt the risk-reward of a now very uncertain integration with AFL with past understandings counting for nothing with the new face-offs from AFL just too much to contemplate.

On balance I agree with those who say it is probably a good thing AFL have not proceeded with this merger, given the debt they would have been landed with. Risk they could do without, also noting that we were told this loan would have been at a variable rate. Now they can 'concentrate on the knitting' - just building up the existing offices organically, limited acquisitions like Withnalls, and turning the business into actual profit. We need to hear more from them about this.