ats to offer better than $3 (australian), page-6

Hey folks. Here's the report iSHMAEL mentioned:

http://www.theaustralian.com.au/business/city-beat/contest-looms-for-redflex/story-e6frg9no-1225971743373


Contest looms for Redflex

Andrew Main

From: The Australian December 16, 2010 12:00AM

IT'S been several months since Macquarie Group tabled an indicative offer of $2.50 a share for traffic camera provider Redflex.

Suggestions are building that a rival offer has now lobbed.

American Traffic Solutions competes against Redflex and is suggested to be close to a new and higher offer, trumping the Macquarie Special Situations Master Fund. But even if ATS goes ahead, Macquarie has a 12 per cent stake in Redflex, so it's in a position to block any rival bidder from getting to the 90 per cent compulsory acquisition threshold. But it could equally turn around and book a handsome profit if ATS turned up with a bid north of $3, as has been suggested. Redflex shares closed last night 5c higher at $2.45.
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And our current situation? Redflex share price is an absolute shocker! The former Directors of RDF rejected a $3.50 offer, and I doubt the bids would be this high this time (only guessing- know nothing!) The current Directors can expect a revolution if they don't accept this time. There's still about 30% in this *if* a formal offer over $3 comes through and *if* the directors decide to take it to the market and let shareholders decide.

Cheers and good luck!