After all you'd feel rejected if the bank were on your door...

After all you'd feel rejected if the bank were on your door step?

EWC PAYMENTS RECOMMENDS REJECTION OF OWN BID FOR NEWSAT
EWC Payments Pty Ltd (EWC) has today delivered its bidder’s statement to ASX.

The bidder’s statement was lodged with ASIC on Friday, 6 November 2009 and sent to NewSat Limited (ASX: NWT) after the close of the market on the same day.

Accompanying this announcement is EWC’s bidder’s statement and two corrected pages from the bidder’s statement sent to NewSat on Sunday, 8 November 2009.

In its bidder’s statement, EWC recommends that NewSat shareholders REJECT its offer for NewSat shares.

The Board of NewSat also recommends that NewSat shareholders REJECT the EWC offer. All of the directors of NewSat intend to reject the offer in respect of their holdings.

EWC says that it has taken the highly unusual step of recommending that NewSat shareholders reject its own offer because potential litigation with the Commonwealth Bank of Australia means that its commercial position is “uncertain”.

While this is certainly a very good reason for NewSat shareholders to reject the EWC offer, there are many other equally good reasons for NewSat shareholders to reject the offer. NewSat will detail these additional reasons in the target’s statement to be issued by NewSat in response to EWC’s bidder’s statement.

If no steps are taken to restrain the dispatch of the bidder’s statement and offers to NewSat shareholders, those documents will be sent to NewSat shareholders between 20 November 2009 and 4 December 2009. NewSat is currently considering whether it should take action to prevent the dispatch of the bidder’s statement and offers, given the futile nature of the offer.

NewSat proposes to issue its target’s statement on or about the same date that the bidder’s statement is sent to NewSat shareholders. The Board of NewSat urges you to read the target’s statement carefully and to REJECT the EWC offer - as EWC has itself recommended.

NewSat shareholders are advised to take no action in relation to any communication from EWC in the meantime.

TG