Ann: STX: Strike increases ownership of Warrego to 19.9%, page-170

In my opinion the range of outcomes here remain large. I think STX has moved from predator and closer to prey. I'm sure that they are contemplating what defence they can raise to protect their independence. Without wanting to make any predictions I feel strongly that the move to gain the 19.99% holding has been both a blocking move as well as a defensive one. They are sending a message to a possible suitor for their own stock that they may well increase their scrip offer to one for one. That makes them a more costly target.

The problem that they had to weigh was that they cannot vote their 19.99% holding in WGO in favour of any subsequent scheme bid. A secondary factor is that they do not have cash to mount a cash offer to match that of Hancock or the like. What they may be looking for is a white knight that will bankroll them for an alternate cash scheme and who would perhaps exchange access to gas for leaving control with STX management. It could end up being a win win for all parties. I am sure there are such manoeuvrings going on behind closed doors.

regards
DF