Ann: Update on Westgold Intention to Make Takeover Bid, page-30

It's too late for FFR to renogotiate the deal. Shareholders are given the vote to decide their fate and most likely it will get up as FFR holders have everything to gain.

Only GCY board can scupper the deal by withdrawing from the merger and paying a $500k break fee to FFR, which WGX will pay if the FFR deal is ditched and at least 50% of GCY holders accept the WGX offer.

The ball is now firmly in GCY's court. Management have to decide which deal favours shareholders of GCY. I hold both FFR and GCY and as it stands now, I think the WGX offer will be hard to turn down even though it is opportunistic.

Long term, the FFR deal looks better if GCY holders wish to forgo short term profits and look ahead. But they know there is currently 50% short term profit if they accept the WGX offer and this deal will probably rerate WGX higher also, meaning growth from an increasing WGX sp should see those who saved GCY end up in front much sooner. Plus they will most likely get a dividend each year from WGX going forward.

The GCY board's recommendation will most likely be guided by what the larger shareholders want as they will determine whether the minimum acceptance level is reached or not.