united we stand re: jp morgan buying Any URLO holders care to...

united we stand re: jp morgan buying Any URLO holders care to join me in a block offer. I sent the following e-mail today in response to today's CUO announcemnt. You are welcome to transcribe it or alter as you wish:

To: [email protected]
Cc: [email protected]

Subject: 1% holder of URLO will accept 1:1 as a fair prior trading price.

Dear Geoff / Lindsay

I hold about 1% of URLO. I will accept one CUO for each URLO. I believe I am due this rate by your criteria of the price prior to the announcement. The math you give as quoted below from today’s ASX release is very misleading in CUO’s favour:

“Under CopperCo’s option offer, Universal optionholders will receive 2 CopperCo shares for every 3 Universal options valuing Universal options at 1.54 cents per share. This equates to a premium of 23.8% to the option price prior to the announcement of the option offer2.

2 Based on the volume weighted average price of CopperCo shares of 2.31 cents over the 10 trading days prior to the announcement of the share offer and Universal’s option price of 1.25 cents over the period 1 December 2004 to the day prior to the announcement of the option offer.”

If you do not accept 1:1, please provide your version of the raw data that gives you the result you claim for the days prior to the CUO takeover announcement.

I calculate that the average URLO price prior to the announcement is more like 2c (see image below). So a 23.8% premium would be about 2.5c for each URLO (not 1.54c). Of course URLO plummeted after the takeover announcement for obvious reasons. I believe we all agree that a prior price (as you claim in today’s ASX announcement) but with the correct data is the only fair way.

Thank you

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