re: packer in ecorp clean-up, afr article Hi Aflatoon, for what...

re: packer in ecorp clean-up, afr article Hi Aflatoon, for what my thoughts are worth, if the takeover is not approved the ECP share price will quickly be below 38c.

If the market thought ECP was worth more than 55c, the ECP share price would be trading above 55c as often happens with other takeovers where the market believes the bid is too low. Given that the ECP share price is trading below 55c the market is saying there will not be a higher takeover and that 55c is a fair price.

The Australian Shareholders Assoc.'s arguement that people paid $1.20 in the float and therefore the takeover price should be higher is ridiculous. I suppose they think that because some people paid more than $1 for Pasminco the liquidators should give those shareholders $1?

Even taking optimistic growth forecasts for 2005 (and who knows what 2003 holds let alone 2005) 55c is a generous price given ECP earnings.