takeover offer for asl is not sufficient

A 32.7% premium is NOT huge by TO standards. ASL is a top quality company. It has zero debt and about 91million in cash. Most importantly it is in THE best industry going (exploration and other drilling) AND has blue chip long term customers such as BHP.

I hold MAH stock as well as ASL. Neither have reached their full potential and ASL has been thinly traded. I suspected a TO was coming when ASL stock suddenly reduced in value about a week ago. Usually means brokers/bankers etc are forcing SP down prior to TO.

Both companies will benefit from a merger but loyal MAH supporter that i am i def feel 32.7% is NOT sufficient offer for a 1st class drilling company.

An offer around $2.80-$2.90 (as opposed to $2.59) is what i reckon is fair value. MAH stands to gain enormously from this TO. Hence, they must be prepared to pay more for this opportunity to break into drilling which they are currently not expert at.

So i will sit things out and urge the ASL board ask for another 20+ cents to be added to TO price. Remember about 30% of ASL assests is pure cash!!!
No extra benefit/margin offerred for goodwill/expertise of ASL.