I do not hold DFT shares...However an associate of mine is up to...

I do not hold DFT shares...

However an associate of mine is up to his neck in these things and is over the moon about the possible merger.

He seems to think they will be aiming at a merged entity with some 100m shares on issue....about 59m of which will be attributable to DFT shareholders.

I have not heard this myself, so really can't comment on it's validity, but must say, he has had a pretty good track-record with DFT in the past!

A quick look at DFT's current share register gives a fully diluted position of about 1,488m shares...assuming the 3c options miss out!

Dividing 1488m shares into 59m gives a ratio of about 25.22:1...so lets call it 25:1.

Assuming a price for CTI shares of around 72c, this equates to about 2.88c for each DFT share.

If however, you include the 3c options, you get a ratio of about 28.8:1...however you still get a final figure of about 2.8c per DFT share...(ie .025 on the conversion plus an extra .003c per share due to the extra $5.5m cash from the options conversion money)

Looks like a sell-off day today, so don't think I will touch them yet, though it does appear to have found a bottom.

It has my attention now!

Cheers!