If we read section 10.8 of the bidder's statement, we find that CBA is chasing EWC for money (creditor's demand) from an old dispute they had with them in the past when EWC had technical issues. In short, CBA wants cash and EWC doesn't want to pay because they believe it's not their fault. CBA has blocked 2.6 million dollars of EWC money and that's obviously causing them some harm.
CBA did not fail the action. They just set aside the statutory demand. They are however still chasing EWC for money and even Starr can see that this won't work out well for EWC. Probably also explains why his wife sold her NWT shares. How else could she get money with CBA blocking all that cash and the wife needing new shoes? ;-)
The takeover is dead and while it hasn't been withdrawn, I would think it's a personal pride thing for Starr to actually deliver the bidder's statement instead of just running away as everybody would have predicted. NWT could probably refer the case to the takeover panel again to have it cancelled?...
We should all just forget about this EWC crap and move on. That's best done by NWT management showing us some new deals and some exciting prospects. Such as Jabiru and new board members. It's now just 3 weeks to the AGM. No more excuses now for NWT not to deliver the goods.
NWT Price at posting:
25.0¢ Sentiment: ST Buy Disclosure: Held
