Don't listen to 'xf1' and his strong 'rumours'. That is just blatant Hotcopper ramping.
I work for an Australian merchant bank and we strongly believe that AIO will reject any takeover offer under $2.50, thus will be taken over with a creeping tender (forcing the share price much higher, probably end up at ~$5), or more preferably at a fixed price, probably around the $3 mark.
You heard it here first, watch this space ;)