Ann: Bidder's Statement, page-26

The market action suggests that I may well be wrong. Very strong volume at above 20c suggests some may well know that a higher bid is coming.

Also, HF said that they would reject the TAG offer “at a cash price of $0.20”. Which suggests that they may be open to accepting a higher price. Truth in takeovers would allow that.

Also, it is hardly surprising that the 5 large shareholders support the 20c SOA. But what is telling is that TAG have gone to the effort of putting these letters together, which suggests that they are quite serious in wanting IHR. I have changed my sentiment to Hold.

What I didn’t mention in my earlier post is:

1. I believe equity markets and the Nasdaq in particular is at serious risk of a significant near-term fall, smashing stocks like IHR. Reducing the likelihood of further increases in the Bid price.

2. BS is a smart businessman and successful investor and the fact that he sold at 16.5c means a few things. 16.5c is full value or very close to full value (and BS knows better than most what true value is), and HF would have given him a strong indication that 16.5c was unlikely to be increased.

And in fact, I think BS did himself and all of us a favour in selling at 16.5c. Had he not done so, the best price may well have still been 14c from TAG, if HF would have walked if it could not secure the 19.90%.

Lastly, reading some of the posts, there seemsto be more than the usual number of passionate shareholders, so at 20c, I am evenmore certain that the SOA would fail.