takeover at these prices just not on, page-41

The issues I have with the article are:

1. They name the consulting group - unusual - especially as often they are the leak.

2. Talks are ongoing - I cannot see that they are with Elders otherwise the directors would have been unwise to purchase equity on market. although not a closed period ( the half year having just been released) they would have very material insider knowledge.

3. They mention the two detractors from the past - Forestry and automotive - thus making other agri uncomfortable to acquire but Forestry is well on its way to being solved and auto is for once not a detractor.

4. The writers are financial journo's - I dont believe that they dont realise that the hybrids are valued in any equation already and are not part of its market cap so buyers of equity in doing the valuations normally look at hybrids as the full value. So the market cap is a red herring IMO.

5. So then to mention that the Hybrids may be ready to take a haircut - Why? and how did they come about this as there is really only one big holder to talk to.

So my conclusion is that they were flying a kite and if they proposed a merger and then subsequent sale of say automotive then in fact the hybrids would not be entitled to claim redemption so all you have to do is start paying the distributions and you have $18,99m credits to use to pay distributions and as I understand it with the interest rate dropping and only 4 years to go to a re-marketing opportunity you can live with these for that period. The use of the franking credit will cost $20 million. After 12 months I believe that the company if it had resources could start mopping these up on the market as well.