Hey everyone while we are on the topic of takeover suitors and...

Hey everyone while we are on the topic of takeover suitors and targets it was interesting to note the following:

BLACKROCK holds 9.85% of SFX ($13m)BLACKROCK holds 8.52% of ILU ($300m)

Given were spending a lot of time speculating about share price action here is a theory Which has been mooted in past takeovers regarding share prices.

It makes some financial sense for a group that straddles the registry fence in such a manner to perhaps prefer to see its $300m position (ILU) acquire the strategically beneficial assets of its $13m position (SFX) as cheaply as possible.The subsequent price uplift enjoyed by the rerating of the $300m position (ILU) would generate far superior returns than any benefit from a higher takeover price for its $13m position (SFX).

Makes you kind of ponder the price activity we’ve been witnessing lately..

Let's be clear here, I'm not accusing black rock or any other institutions of actually going this, I just used BR as an example to make the point.

Let's give big business the benefit of the doubt when it comes to ethics.