Hi Littletee,On the basis of the Roslyndale bid, it is doubtful...

Hi Littletee,

On the basis of the Roslyndale bid, it is doubtful that companies such as UEC will now be worth their current share price. Even worse for PWT shareholders.

Today, UEC secured a further extension of its funding agreement with UEL. But, ALN is an unwilling (ie: not long-term) shareholder. Going forward, UEC is going to have to spend CAPEX in order to build its business base (understandable), whilst watching the value of that CAPEX corrode away, as if immersed in acid (or left to fizz in Coca Cola for 4 -7 days).

Seriously, PWT has long been mooted as a consolidation option in the small telco sector (ie: along with MAQ, UEC, etc). Now, with PWT in final survival (or vulture privatisation) mode, the range of merger options for UEC is fast running out.

Going forward, the share price in PWT will now trend towards 2 -3c (as opposed to CSFB's forecast of December 2002, of 16c), whilst UEC's share price should slip back to the low teens, or below. It is doubtful though that UEC will now be able to extract a premium price (ie: above 20c) given the comparability of PWT's share price, etc.