90 cents a floor price

Db76 was quite right to point out the "problem" with the TRU transaction where they get paid 90cents cash per share.

This is also a follow on from Bundy's posts on another thread..

Not only is it unethical to have differing treatment between ordinary shareholders but it is blatantly against the corporations act:

The following was provided by a fellow member of the ESGSAG:



http://www.comlaw.gov.au/Details/C2005C00676/Html/Volume_3#para2.722

619 General terms of the offer
Off-market bid
(1) All the offers made under an off-market bid must be the same.
Note: The offers may include alternative forms of consideration (see section 621).
(2) In applying subsection (1), disregard the following:
(a) any differences in the offers attributable to the fact that the number of securities that may be acquired under each offer is limited by the number of securities held by the holder;
(b) any differences in the offers attributable to the fact that the offers relate to securities having different accrued dividend or distribution entitlements;
(c) any differences in the offers attributable to the fact that the offers relate to securities on which different amounts are paid up or remain unpaid;
(d) any differences in the offers attributable to the fact that the bidder may issue or transfer only whole numbers of securities as consideration for the acquisition;
(e) any additional cash amount offered to holders instead of the fraction of a security that they would otherwise be offered.



SANTOS made a mistake, they should have in fact offered the following:

All shareholders have the choice to accept SANTOS Scrip at whatever price (.06881) or 90 cents cash to reconcile with the TRU energy payment of 90 cents cash.

I guess SANTOS did not expect the bottom to fall out of the market. Expect or not, it has and the deal is now not only not fair and reasonable but it is AGAINST THE LAW

We will have the law on our side in black and white on this one! No amount of excuses like "Oh but, this deal with TRU was one of the pivotal reasons the takeover happened" is going to cut it!

Sorry boys, talk to the hand or should we say ASIC!

Watch this space, EXPECT an alternate 90 cents CASH offer from SANTOS and watch out for the media going to town on this one!! :D