Note article refers to Fontaine and Meade as Directors - they are not directors - but s/h. Article also ignores fact that Directors own 12%.
Is this the same article as in SMH ?
******************************************************** Arrow's last chance to achieve its target
Today marks a make-or-break day for Arrow Energy in its quest to acquire coal-seam gas explorer Pure Energy. Pure directors Tom Fontaine and Karl Meade, who respectively own 5 per cent and 3 per cent of Pure, will accept a rival $8 a share offer from English company BG Group by the end of the day should Arrow decide against upping its offer. That, combined with the stake BG bought in Pure ahead of its offer, would give the UK-based group almost 18 per cent of Pure. Based on Arrow's closing price yesterday, Arrow's cash-and-scrip offer was worth just $6.92 a Pure share against Pure's $8.31 close. Arrow was weighing up its options late yesterday, but is believed to favour a more meaningful move than the small incremental increases seen in the bidding war between Arrow and BG to date. Arrow's only way to achieve such a move is likely to require some input from its CSG partner Royal Dutch Shell, as Arrow has relatively little chance of outspending a company the size of BG. Even if Arrow decides not to increase, they may not want to accept BG's offer. Together Arrow and Shell hold about 32 per cent of the stock and are understood to believe Pure is worth more than BG's $8 a share offer. Throw in the hedge funds that have bought an estimated 7 per cent of the stock at about $8.40 a share, and this deal is still some way from getting + over the line without a sweetener. , FBA 020
AOE Price at posting:
$2.57 Sentiment: None Disclosure: Held
