deal concessions not high enough

Ausbil & Perennial might be happy but i reckon KS
has got off lighty and not really given up that much to get their support for the deal to be a fate complete.

Given KS is receiving rent and reimbursement of some other costs,the at risk part for KS should have been all 115m shares as part of the transaction and not a misely 15m shares,considering afterall he'll be now debt free !once access to SEV'S cash is obtained to pay off westracs debt.


Perennial Value managing director John Murray said there were "many lengthy and frank discussions".

"We have been able to agree on a downside protection mechanism for minority shareholders," Mr Murray said in the Seven statement.

"We had reservations on the terms in the absence of this ACE commitment, and we also welcome the board renewal process."

ACE faces a $130 million hit from the value of the issue price of shares cancelled, should WesTrac miss its 2010/11 guidance of earnings before interest, tax, depreciation and amortisation (EBITDA) of $231 million.

Mr Stokes, who is executive chairman of Seven and ACE, said he was "extremely confident" about WesTrac's prospects.

"As a result, we are happy to demonstrate our level of confidence by standing behind WesTrac's future earnings," Mr Stokes said.

Ausbil Dexia chief executive Paul Xiradis said the negotiated outcome showed Seven and ACE were willing to put a dollar value, which he described as "quite a material amount", behind their outlook for WesTrac.

"Now that they are willing to stand by it with a potential loss of shares if those projections aren't hit, to me is just adding some reassurance," Mr Xiradis said on Monday.

"It gives me a lot more comfort.

"I think there is a very good chance that the merger will succeed."