offer analysis, page-4

stateside,

I also hold your cynicism regarding mgmt's intentions on this deal and the correspondence with shareholders is insightful as to their bias to hold the cash and keep their jobs.

Normally legal firms advise an asset sale to avoid any potential liabilities which may arise at the corporate level, but given the simplicity of the CHN entity this is a very low level risk.

To be fair to mgmt, SFECO may have initially put the offer up with little or no interaction with CHN mgmt. But, the CHN board had plenty of time to contact SFECO and suggest amendments to the published offer. My experience has been that if a board believes it unlikely that an offer would be accepted by shareholders they will make it clear to the bidder and make suggestions. There is still plenty of time for this to occur.

It only takes a few of the institutional holders to stand firm on their voting preference and the board must act. We also have a vote and every shareholder has access to email and phone. Shareholders have no right to complain about a negative outcome if they let aphathy overwhelm them.

Maybe CHN should appoint a capable advisor and put the listed entity on the market after the no solicit period. I'm sure there are others interested in the company.