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@Transversal,

Your Point e) is the one that I find to be the most salient.

I suspect that the IOOF board will understands very well the change in the extent of the optionality that has arisen over the past 72 hours in relation to the ANZ transaction.

Two hundred or three hundred million dollars of downward adjustment to the purchase price for the remaining ANZ business is nothing in the context of ANZ's near $80bn market value, but it is a meaningful quantum when viewed from IFL's standpoint.


In that light, correspondence today something along the lines of the following would not be completely out of place, I think:


"G'day Messrs Elliott, et al.

You know how ANZ and IOOF in October 2017 - that's basically two years ago - agreed to buy your wealth business from you?

Well, as you know, a lot has happened in our industry since then. Truly, a lot.

Many things have led to a change in the way these sorts of businesses are fundamentally valued.

Now we know you guys are still contemplating whether or not you want to sell your business to us.

But, as you finalise that process of contemplation, you'll probably want to reconsider what the new valuation is for your business, because - you know what? - we are seeing many willing and highly motivated vendors of other businesses just like yours who have offered us their businesses to buy.

And, in the light of that, we are wondering if we should still complete the deal with you guys, or whether we should simply buy something else.

Tell you what, to help us make our decision, why don't you guys look again at your business, have a fresh think about what it is really now worth today, and come back to us with the new, lower, valuation number, and we'll put that in the ring with all the others?

And then we'll get back to you to let you know whether you still have a deal or not.

Or you can simply put you business back on the market at the original price and start the sale process from the beginning

Let us know how you want to play it from here.

Look forward to hearing from you guys.


Best wishes always,

Renato and the rest of the gang over at IOOF"


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