The obvious next step is that there is some negotiation and Woolworths have to make the bid more attractive. All the commentators are saying that $4 is a full price and Woolworths can't be expected to pay more, which I have no reason to doubt, but there are several cents worth of franking credits which you would normally expect to be paid out by way of a dividend as part of the Scheme. This would be done at no cost to the bidder. I am really surprised that there had not been more talk of such a move. I can't see what the impediment would be and in that case, Mr Lew would be up closer to $10mio, and everyone else is better off too!
DJS Price at posting:
$3.88 Sentiment: Buy Disclosure: Held
