re: Ann: PaperlinX's response to RE annou... I don't think it is...

re: Ann: PaperlinX's response to RE annou... I don't think it is a buyback as PPX are not buying PPX shares. They are buying units in a trust that has advanced money to one of their group.

As that trust is a listed management investment scheme I think the usual takeover rules apply - PPX must send out a Bidders Statement with full disclosure and then the Trustee will send out a Target's Statement with full disclosure and a recommendation. If that is the case (any lawyers out there?) then I imagine management and their advisers will be tying themselves in knots over that - for the offer to be fair I'd expect they have to they have to make the case that PPX is a going concern but has no near term prospect of recovery let alone payment of a dividend (so no increase in price any time soon). Given the CEO's incentive package, he's clearly working towards a much rosier outcome.