insto's view!, page-6

..I agree totally.
I've sent off another email to Valad requesting an update, so can but wait. Without wanting to flog a dead horse, if anyone hasn't yet contacted Valad, or not filed any complaint with Asic (assuming they want to), can I encourage you to consider doing so over the new year. It's only a couple of months before the 1/2 AGM so now is the time to act. Following is a response received from Trevor Gerber regarding questions related to the MBO - good to receive responses, yet I still don't like the word 'contemplates' - heck I've been 'contemplating' with VPG stock for the past year. However the reply does indicated some commitment nonetheless so here's hoping:

----------------------------------------------------------Dear XXX,

Thank you for your email, we take your concerns seriously and have done our best to address your direct questions. Please see the below responses following the order of your email:



1) Firstly, I would like to clarify your comment that ?Valad is now operating with nothing more than a skeleton Board and set of European executives? - there has been no change to the Valad Board of Directors apart from Peter Hurley who has taken a leave of absence. Also, all of the European executive team remain in place; however they are operating under protocols, as detailed in the ASX announcement of 16 December. In Australia, the Group CFO, General Counsel and the senior leadership team remain unchanged and are not part of the MBO Group and as stated in the ASX release the Managing Director role will be shared between ?Valad?s existing senior leadership team with oversight from Valad?s Chairman, Trevor Gerber?. Trevor has not been appointed Managing Director, however, consideration is being given to appointing an acting CEO.

2) Your comment that ?no moneys would accrue to Valad directly, rather be used to pay down the owings on the DUKE portfolio? is incorrect. While the current arrangements state that if Valad choose to sell Valad Europe before 30 June 2012 the net proceeds of any sale must be used to reduce bank debt in DUKE (the 50:50 Joint Venture with Lloyds Banking Group), the MBO proposal contemplates (as stated in the ASX announcement) that ?despite the existing arrangements, proceeds of sale will be returned to Valad.?

As noted in our ASX announcement, protocols have been implemented to deal with the assessment of the MBO proposal and the behaviour and actions of management involved in the MBO Proposal. Any proposal constituting a related party transaction for the purposes of the Corporations Act or the ASX Listing Rules , will be treated in the manner required by the Act and the Listing Rules , including where appropriate, a vote by security holders at an EGM.

The MBO proposal is still at an early stage and no formal offer has yet been received by Valad. If and when a formal offer is received it will be fully assessed by the Board, including seeking an assessment by an independent expert.

The Board is aware of the uncertainty and potential concern that this type of proposal creates and will continue to assess it and ensure that any decision by Valad to enter into an MBO and the price at which assets are sold is in the best the interests of securityholders.

Valad will continue to inform the market of relevant developments as appropriate.



Regards,

Trevor Gerber
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