Ann: Spotless lodges Target's Statement - REJECT Downer Offer, page-3

I'm of the opposite view I have to say. The new information provided in the Target's Statement was more of the same (trust us, strategy has been wrong for years but now trust us that we have it right..) and the new earnings guidance was less than impressive. Very disappointing Target's Statement considering the circumstances and what was foreshadowed.

Anchoring to $2 is irrelevant given the proof is there to see that it was an inflated valuation at IPO. It doesn't generate anywhere near the earnings that it did then; it has more debt; it has a fraction of the yield... it's just a different beast altogether.

The only interesting new piece of information was that SPO had previously discussed a merger with DOW and estimated synergies at $60m. This supports the notion that DOW will press on with their bid given the additional benefits that will be available through the combination. $60m synergies is huge - at 5-7x EBITDA that's $300-420m of value.

Coltrane's comment in there about SPO trading to a higher multiple because that's what global peers trade on made me laugh. Simplistic in the extreme and not a strategy you can bank on.

I will be accepting DOW's offer with haste.