Good on ya NO 2..... I'll post it for you and all shareholders...

Good on ya NO 2..... I'll post it for you and all shareholders to see

Fairstar bid raises questions
5th September 2007, 9:30 WST
Gold and uranium explorer Fairstar Resources yesterday launched a $216 million takeover bid for its bigger Osborne Park neighbour, Golden West Resources, in a move that could consolidate the listed holdings of Boulder prospector John Doutch.

Under the scrip bid, Fairstar is offering five of its shares for every one share in Golden West, a Wiluna iron ore hopeful with a market capitalisation of $146 million — or just under four times the market value of the bidder.

The offer comes a little over seven months since Fairstar branded as “garbage” persistent market rumours that it was planning a takeover or merger with Golden West.

The companies share a director in Alan Rudd and a major shareholder in Mr Doutch.

Companies directed by Mr Doutch are listed as holding 23 per cent of Golden West and about 14.7 per cent of Fairstar.

Shares in Fairstar closed 1¢ up at 61¢ yesterday, nominally valuing its bid for Golden West at $3.05 a share. Golden West shares spiked after the bid was announced to close 13¢ higher at $2.18, up from a low of $1.50 on August 17. The stock had consistently traded above $2 and as high as $2.50 before the sharemarket was hit by the sub-prime jitters in late July.

Fairstar, whose shares bottomed at 49¢ on August 17, claimed in its statement yesterday that its bid represented a premium of about 53 per cent to the volume-weighted average price of Golden West shares over the past 30 trading days.

Fairstar said it reserved the right to make an alternative bid that included some cash consideration while retaining the all-scrip option.
The target company said in a statement that it had received notice of the proposed takeover from Fairstar and was considering the terms of the offer. It said it would provide an update to shareholders shortly, but in the meantime advised them to take no action. Golden West managing director Gary Hutchinson confirmed in April that his group had been briefed on a proposal for Fairstar, but he did not believe it was worth pursuing and no action was taken.
NEALE PRIOR