takeover, page-22

from huntley's today:

Impact:

Directors advise shareholders to take no action at this time.

Our valuation of $3.80 reflected the risk of a dilutive equity issue around $3.00. An acquirer such as the current bidding consortium faces no such concern and thus can attribute a more realistic value to the equity, and we consider a higher offer above $5.00 possible, particularly should another bidder emerge.

AIO may announce measures to reduce its debt load possibly via the sale of a stake in its ports business. This would reduce the risk of equity dilution and help to exert upward pressure on the bid price.

The possibility of the bid being disallowed on the grounds of national interest, given the strategic importance of port assets, needs to be considered.