announcement trading halt, page-38

I can only look at positives and negatives in terms of what the financial effect on shareholders might be.

- a takeover offer sets a defined price offer that would be above the current price. In a normal operating company the takeover premium is often about 30% up on the pre-offer SP, but this is a start-up company with a blue sky future so I would expect it to be well above that - how much above is anybody's guess at this stage. However the directors hold quite a big proportion and, I expect, would need to be onside, so the price would have to reflect their ideas on what the SP might develop into when the current products gain traction
- after the bid, if other companies out there see RHT as worth having, there could be a competing offer(s). That would normally be very good for shareholders. But it cannot be guaranteed.
- it is often said in takeovers, that the first offer is not usually the final offer and so there is likely to be a few increases in the offer bid. Of course, the corollary to that is that the first offer is just a 'toe in the water' bid, but at least we would get an idea as to where we stand.
- I am sure there are lots more things but I simply am not an expert on takeovers