Initial Substantial Shareholer Notice posted by Schroders today....

Initial Substantial Shareholer Notice posted by Schroders today. Have bought up nearly 6% over last month at ave price of $2.27.

If my memory serves me right Schroders have taken positions like this before when Mayne persued Faulding (built up large interest in Faulding). I think they know the industry pretty well and have a extra keen sense of smell.

My tip is that this signals that we will have Symbion (part of the Mayne group) putting a proposition to API shortly. Symbion will be cashed up with the sale of Mayne Pharma. Symbion and a bucket load of cash is all they will have left. I am sure they are concerned about their declining market share in Pharmacy wholesaling and will be prepared to make a reasonable offer (e.g. in the vicinity of $2.40 to $2.50).

How the API board views the offer will depend greatly on how API has performed in the Oct - Dec 06 (the 1st quarter of their recovery phase.