imo otl is a near certainty to be taken over for the following...

imo otl is a near certainty to be taken over for the following reasons

its australian operation is very profitable and generates about 5million ebitda a year. customer base is growing in tassie.

ireland operation is growing and looks set to generate positive casflow from start 2006

spain is a huge market and after initial start up costs are completed should do very well in 06/07

otl are forecsasting ebitda of at least 5million in 06/07 and this puts them on PE for that year of 2. even with a reduced profit this year due to one off costs fighting telstra they are still going to make 2.5-2.7million. this has them on a pe of 4. their assett backing is 13cents.

a bigger player will take them out at 25-30cents to get the customers. it is very good value at 13cents

cheers