the tty offer, page-40

A MEMO to Territory Resources.

TO: Territory Resources.
From: Daily Assay.
Subject: Press Speculation concerns.
Date: July 24.


Dear Territory,

I note with concern your concern about the press speculating as to whether Territory will change the details of its takeover bid for Consolidated Minerals.

You're concerned, we're concerned - everybody's concerned. And now it looks like the Australian Securities Exchange is concerned.

Firstly, Daily Assay hasn't seen what all the other journos around the nation have written in regards to a possible improved offer from Territory, but the stuff we have seen is pretty much in line with what The Weekend Australian reported on Saturday.

That being Territory is going to review its bid in the wake of a Pallinghurst improved offer for ConsMin which lobbed on Friday.

As part that review, Territory is possibly looking at throwing more cash into the mix of its cash/scrip offer which values ConsMin at $966 million.

"We're going to review our offer. We could go all-cash if we wanted to and it's definitely an alternative," is what The Weekend Australian reported Kiernan as saying.

That came from a conversation with Kiernan himself. On Friday.

It's not wrong. The notes speak for themselves.

Other reports noting that alternative have also surfaced.

So why did Territory managing director Doug Stewart tell the ASX on Monday, after presumably the ASX raised the issue, that it was the just the press being speculative that Territory was thinking of changing its offer?

"Territory Resources Limited notes today's press commentary on its takeover bid for Consolidated Minerals Limited and confirms it is merely press speculation," is what Stewart told the ASX.

Me and my press buddies get blamed for a lot of things. Some of which is right (and which makes us duly embarrassed), while some of the accusations are just dead wrong.

Also, didn't Territory pay a representative of the company to ring around and touch base with the hacks on Sunday to spruik the line that the company was seriously considering lifting the cash component of its offer?

Think very carefully about that one.

The Territory spruiker even went to great lengths to point out that the information was coming from an :industry source" and should be reported as such.

That's how the Sydney Morning Herald played it on Monday.

"Industry sources said Territory was 'seriously considering' a sweetened cash component," is what the Herald's resources expert Jamie Freed penned.

So why is the press being accused of mis-reporting? Did we make it up?

Or is there something written elsewhere that has led you guys to finger the press for the "speculation"? If so, shouldn't Stewart have made that very clear in the ASX announcement.

As we have said before, Kiernan is somewhat of a straight-shooter in the resources game and a breath of fresh air for the members of the fourth estate.

He tells it like it is - or how he perceives it. There can be no doubt about that.

And it might just be HIS speculation that Territory will increase the cash component of its bid. But he is the chairman after all.

As noted before, it may be an entirely off-the-mark media report which has got Territory's back up. But that point should have been made clear in the ASX announcement.

But dumping on the press for reporting Kiernan's - or the spruiker's - comments accurately is not fair. And it is likely to win you few friends either.

Yours sincerely
Daily Assay

email: [email protected]