----- Original Message -----
Sent: Thursday, July 05, 2001 7:45
PM
Subject: Re: [sharechat] bch
Mike,
Did you read my post of June 25?
Since then, BCH fell to $12.20 while DAD rose
to $A 6.90.
At present, I am surmising that the Alliance
will have to pay fees to DAD to secure info. from their Credit Reporting
bureau.
It is also possible that the Alliance has to get
all their credit reporting from DAD by contract!
If fees for this service became exorbitant or if
the Alliance did not perform as well as expected, then a takeover of DAD
by BCH could be possible.
Suffice to say, that DAD would
promote some arrangement with BCH, who in turn would be
alarmed if a third party made a takeover for DAD.
The word " Merger " sounds good but may not
apply. If BCH took control
at a cost, then
they could bring in the Credit reporting section into the Allance and
sell some other DAD assets.
I have already said that I would prefer
CLH, one reason being that it could be cheaper to invest in
this stock than accepting an " arrangement " of BCH
with DAD which may
involve the issue
of some 200 mill shares or more to replace the
previous sets!
Excellent investing requires foresight and
the making of assumptions. The latter may not be correct but if you waited
till the actual terms were clear, you may be too late to act!
In any case, the signs are pointing to an
arrangement which is beneficial to DAD shareholders!
I think that DAD with its somewhat checkered
history is selling above its valuation in relation to the already high
valuation of BCH.
My report pointed at an allocation of shares
to each party. Because of the latest price rise of DAD and the fall in
price of BCH, a new ratio will not
be to advantage of BCH, I feel.
As I mentioned, the location of any HO will
determine the currency and the franking of dividends. I am not sure if a
Westpac style of arrangement is being looked at!
Gerry.
Holds BCH and CLH
See IRG research reports
