magna pacific strong buy, page-15

my guess is .35c....not a calulation, just a hunch it will be enough to get all the directors on, which based on the SMH article below, may be difficult.

Anyway, see what the weeks brings us.....

SMH - 3/2/07
THE takeover of DVD distribution company Magna Pacific is shaping up as a gripping drama, involving the world's biggest independent film company, suspicious share trading and a split board.

Magna Pacific's board told shareholders in a letter on Friday that it was not yet in a position to make a formal recommendation on the 32c-a-share offer from Canadian entertainment company Lions Gate, which values Magna Pacific at $34.6 million.

Lions Gate is listed on the New York Stock Exchange and won last year's best picture academy award for Crash. It recently opened an office in Australia and has an output deal with the Nine Network, which includes the comedy hit Weeds.

But 12 minutes after the board's letter was released to the stock exchange, managing director Allan Radley, company secretary Jan Vasyli and another director, John Russo, put out their own announcement.

The four-line release said they would not sell their 10.4 million shares into the offer.

It's a mixed message for shareholders in Brisbane-based Magna, which said in its recent earnings update that net profit for 2007 would be flat compared with last year.

"The bid was out of the blue," Mr Radley told the Herald. "The price is far too low."

Lions Gate's local chairman, Simon Franks, said Magna's management team "doesn't really understand the new dynamics of the film industry".

He pointed out that Magna's biggest shareholder, Macquarie Private Portfolio Management, had already agreed to sell its 11.23 per cent. "Shareholders are looking for an exit," he said.

Meanwhile, it is understood that the Australian Securities and Investments Commission is looking at the share trading in Magna over the past few weeks.

Lions Gate approached Macquarie about buying its parcel of shares on Tuesday, January 23, when the stock was trading at 22.5c. The stock surged to as high as 29c before Lions Gate made a public takeover offer on Thursday. The stock closed up 5.5c at 34c on Friday after more than 4 million shares changed hands in heavy trade.

Magna's board said it would meet "shortly" to discuss the offer in more detail. Mr Radley said the company would appoint an independent expert to prepare a report. He believes the company's new property in Brisbane has been undervalued in the offer that is on the table.