The notion of fair and reasonable according to ASIC guidelines...

The notion of fair and reasonable according to ASIC guidelines is basically that anything goes that is above market price. The courts may not and judging by case law probably would not agree with these guidelines. They need to be reassesed especially when their is a foreign major holder on board. Its too easy for directors to steer the company in way that will lead to share price declines and to dilute the minority voting power. I believe that a closer examination by the courts would yield better results. I have no idea why ASIC are so lenient in these situations but I assume that someone with the 'market value equals true value' idea stuck in their heads has made the call, which is ridiculous. I brought this to the attention of ASIC in Treyos case but they are sticking to their guidelines which allow 'unfair but reasonable' takeovers and say that anything above current market price is reasonable. They suggested tort could be a better approach. The foreign shareholders in Treyos case blames the Australian shareholders for not trusting them. In the case of SBB it will be a lot easier to demonstrate why Australian shareholders thought there was untrustworthy about the company.