The acceptance of ZFX's offer by LST meant that they were happy...

The acceptance of ZFX's offer by LST meant that they were happy with the price "given the prevailing information at the time". The extension of ZFX's offer was contrary to the information presented to LST and thus a change of information means a different perception by LST of the best value they could obtain.

The intention of the truth in takeovers provisions and the takeovers panel is to prevent acquirers from misleading shareholders. Under the circumstances it would be highly unlikely that ZFX did not know of their intention to extend the offer ONE DAY before offer close and therefore their actions materially misled AGM shareholders.

To answer your question Andrewe, LST may now feel cheated because the extension of ZFX's offer without any significant acceptances so far AND given AGM's indication that other parties are perusing their data room would seem to imply that ZFX are willing to offer more should a counterparty arise. The extension of the offer in effect gives ZFX the option to match or beat any subsequent offer, or even make a higher offer on a stand alone basis if they do not manage to attract enough acceptances. The extension is an indication that ZFX want AGM more than they actually led us to believe. If ZFX truly intended to walk away then given the incredibly low acceptances to their offer they would not bother to extend unless they stand ready to trump any rival offers to close the deal.

Cheers
UIO