Ann: Response to ASX Query, page-273

Why would a company's say that it was a risk that it could be taken out prematurely before full value was realized IF the executive management team alone could block the compulsory acquisition threshold being reached ?

Exactly. It's a crock. If the ones running the company are truly confident of the company's future success they simply wouldn't entertain the thought of a takeover and there would therefore be no risk as they have a significant blocking stake. The only reason the directors would contemplate it is if they've had enough and want out, then a takeover is the only way that is going to happen as their shares are escrowed. And if that's the case it would be a distressed takeover which means nowhere near the current marketcap. Which you then ask, will other shareholders approve the offer? Imo, unless the situation is diabolic anyway, the answer would be no. Simply I can't see the current scenario a suitable condition for a takeover of such a magnitude. Holders will probably want to hope the takeover talk is just rumour as, whilst it would be a great outcome for the directors, it would be a poor result for current shareholders.