every cent drop in the SP of STO, imho, means a better chance of...

every cent drop in the SP of STO, imho, means a better chance of STO having to provide a cash alternative to its scrip only offer.

One thing this bid did, was to formalise the fact that STO wants/needs ESG and its resource.

So STO won't go away.

Currently ESG SP is 66.5c.
Prior to the t/o announcement the ESG SP was 60c approx. that was on 17 July.

So in spite of a lon, long awaited STO bid, we are already almost back to where we started! thats really quite incredible imho, given a t/o is happening.

Obviously the only reason this can happen to ESG is because the bid is scrip based.

some aspects are pretty clear:
- STO wants ESG
- STO has valued ESG shares at roughly 90c
- STO stated that 90c was scrip value offer
- STO prepared to pay TRU 90c CASH - so that to me is the line in the sand
- STO trumpeted that offer was about 50c gj for 3P
- directors of ESG recommended the Offer BECAUSE it was valued at around 90c level
- IER must now look at Offer price relative to market price per GJ offered.
- SO, STO offered roughly 50c /gj 3P - but now that offer price equates to 37c / gj of 3P (pls check my calcs)

- SO how can the IER get around that?

If the offer was ok at 50c/gj 3P, how can the ESG Board and IER still say its OK at 37c?

IMHO, the only way out, is for STO to offer a cash alternative to its get around its falling SP scrip alternative.

and it will, because it wants ESG!