trading halt

Auto - first let me say I was wrong as to the intent of the purchaser in regard to the current trading halt. I should have first gone back and read the speeding ticket ASX response more carefully.

The following is what it says in section 4 of their response to the ASX ( last paragraph after requoting their reposnse from 30th march)

"The Company notes once again that the potential change of control transaction is still under contemplation and this if it were to proceed, it would involve an offer to gold one shareholders to acquire all of their shares. Again, no assuranace can be given that such a transaction will proceed. The company will provide an update as required".

That update came on 13/5 where it clearly states "pending an announcement by the company of a change of control transaction".

There logic would conclude that it is proceeding ( is says "of a" not "about a") and that the offer to acquire all shares( based on 30th March and 10th May announcments, although this is still infired as it may have changed form in the interviening period ( ie from 10th May till now although I doubt it) will be coming our Tuesday giving themselves to time to prepare the details for the market and continue to resolve and conditional elements.( Although I would add that if the buyer already bought 17% of the company at 53 cents then they probably wont have too many conditional elements , maybe other than issues regarding the CN).

I also now believe that the Directors who must act equally for all SH would not in their right mind bring all SH an offer of 53 cents hence I conclude that the offer will indeed be higher how much higher depends on the value the Chinese see and both parties negotiating skills.

Will this action by Chinese trigger bidding war I don't know but with them already having 17% stake it will depend if the board recommend the offer pending any higher offer.