Well Lone Star knows all the ODP contract details. Lone Star has gone in now to make sure the VWAP is as low as possible to promote the fact that they are paying a reasonable premium. Also, Lone Star can withdraw the offer whenever they want, especially if the ODP doesn't get approved or the final details are not to their satisfaction. Also, the SofA wont be voted on by shareholders until Sept. so we should have a pretty good idea of SOE co-operation and CNEML finances by then.
I think they have timed it now because our EOFY is coming, there will naturally be shareholders taking a profit and no doubt they will probably buy some SEH through one of their multitude of alias accounts and then use them for voting.
The volume going through SEH atm is still surprisingly low.
The unanimous board approval of this SofA is what worries me a little.
SEH Price at posting:
24.0¢ Sentiment: Hold Disclosure: Held
