Just an update from my previous discussion with Alan Dury and the MD of ECX:
I wrote to the company on Thursday and a company representative, Alan Dury responded this morning. The essence of my questions are as follows:
When I last spoke to Alan Dury and MD of ECX previously, they told me in our discussion, that ECX has conitnuous discussions with MMS about the merger and yet MMS appeared in the announcement to be surprised at the profit downgrade.
Answer: Alan's response: We cannot speak for MMS but there has been a continuous dialogue between the companies, and ECX has provided MMS with extensive materials throughout the period.
Can ECX now approach SGF for another offer even though at lower prices not that the merger offer is considered to be dead and buried?
Answer: Alan's response:The SIA (MMS Merger agreement with ECX) remains in force until 30 April, and so the No Shop clause is still enforceable. That means ECX is not able to approach any parties without express consent of MMS. However, it does not mean other parties are unable to approach ECX, although ECX is required to notify MMS. ECX directors have a responsibility to their shareholders to consider any offer.
In summary: What Alan Dury and the company are telling me is that, the SIA is still in force until 30th April even though previous extension of time request by ECX was refused by MMS. So that means there is nothing to stop MMS coming back with a lower offer. ECX cannot make direct enquiries or approach SGF or other parties to discuss any competing offer. However, the SIA does not stop SGF or other parties making another offer for ECX. It is also the directors' responsibilites to consider if another offer is made.
Hope ALL this makes sense to everyone!
Cheerio, Isdhope
ECX Price at posting:
74.5¢ Sentiment: Buy Disclosure: Held
(20min delay)