Ann: UNV: Response to Terracom's Ann.of an Unsolicited Bid, page-5

Standard response that the TO is too low.

These UNV guys will get tinned when TER take control; so this is their last chance to try squeeze a buck from UNV/TER before that happens.

TER only need a few percent of the shares (3%) to take control, so UNV has to throw everything they can at it now.

TER's bid is at a good premium in a weak market for Coal.... There aren't too many other bids flying around for these things!

When combined, TER will have UNV's assets as diversification... so solves the single asset/mine issue, and actually gives UNV shareholders some diversification they don't currently have.

And TER and UNV continue to spit out cash... so the debt is being paid off at a rate of knots. the TO will accelerate that process, as well as reduce the gearing of the combined entity?

Lets get this done quickly, and the larger combined company will be more liquid and better placed for investment that either of them are currently IMHO.