buy time, page-4

H -
"One thing I have been wondering is whether STO may be obliged to pay shareholders 90 cents the same as they are paying TRU for their shares..."

thats what I pointed out when the bid was announced.
I am sure that under the Corp Act a bidder is not allowed to pay one s/h one price. and pay another s/h another.

and that assuredly would cover this situation where one s/h gets cash, but evryone else gets scrip.

the only thing I can assume, is that this differential payment is included in the Scheme - so it will be voted on by ESG s/h.

Form memory the vote on the payment to TRU (and the TRU sell-down) is interdependent. So we are unable to approve the payment of scrip to ESG s/h, but we cannot also vote down the payment of cash to TRU.

Its a given that STO has done its sums on whether to pay cash to all ESG s/h vs paying by scrip. It would be a big issue, but I would have thought that STO would not have trouble find a cash alternative for all ESG s/h.

there would be plenty of ESG s/h who would want to stay in, and would want roll-over relief.

i am amazed at how little outcry and media coverage the payment to TRU has generated.

now in this market, that guarantee of cash payment is looking attractive.

NERVOUS - that may well now be a leverage point ie a point of arguement or negotiation?

cheers