mfs announcement due this coming week, page-15

From past announcements / presentations what we know is this:

* On 17/10/2007, the UBS presentation re the "non-sale" of Stella had MFS thinking the business had an Enterprise Value (ie. equity plus debt) of $2.52 billion
* This was based on an EBITDA multiple of 12
* This gave an Equity Value (ie. value to MFS after subtracting debt and transaction costs) of $1.57 billion

Now clearly they were NOT offered this last year, otherwise they would have presumably undertaken the transaction. It should be noted that something is only worth what someone else is prepared to pay.

The short of it is none of us (or if someone has inside info please let us know) has any idea what they were in fact offered. It would be fare to assume, however, that whatever will be offered now will be no more than last year, and likely less given MFS now appears to have a greater urgency to undertake a transaction.

I'm still going to stick my kneck out and say they will get $350 million cash for half their shares in the business. Pure guess, but working off an EBITDA multiple of around 6.5 would arrive at this figure. IMO anything aboe this would be a bonus.

MJS