that's a breakout, page-30

Some Saturday ramblings if merger with Group M happens:

Firstly the chart is now a very bullish breakout of an ascending triangle continuation pattern and should go into the high 70's may even touch 80c before some consolidation.

Harold and Sir Martin are kindred spirits both self made and obviously get along; the time is right for consolidation so if it's going to happen it will be now.

Chance for Harold to be bigger even than the multi-nationals in Aust/NZ; he has always wanted that and Sir Martin wants world domination but needs the Mitchell name to do that here.

Harold mentioned he was looking for acquisitions in about February but has been conserving cash & very low profile so has probably been working on a company transformational move; this potential merger is certainly that and would vault MCU into the ASX 300 and onto broker insto's radar.

How would it play out; The value of Group M Australia which is a similar size to the MCU media buying arm may be valued at $100m(dartboard estimate) lets say half cash and half equity issue (price 90c) and Harold may hand over some of his own shares if the price is right.

There are some conflict issues with 20% ownership issue of SGN by Sir Martin which also has media buying capability.

Ideally SGN & MCU would merge with Group M to form a megaship media company but don't expect that to happen at this stage and SGN SP is not indicating this play is on.

Importantly what would this mean to the MCU SP well initially a sharp jump to the 90c-$1 range followed by the usual consolidation and then a steady surge up as the instos move onto the register. SP target over 12-18months say $1.20-$1.50

Just be advised this is just some thoughts on a boring Saturday and none of this may come to pass.....then again!