Forum Archive Index - October 2001

["Brian Orr" <brian@laserfoil.co.nz>]

Tend to agree that the low takeover price is very opportunistic, especially
with the uncertainty at the moment. I feel that the fundamentals of the
company are very strong and getting stronger. The problem though is lack of
dividends, liquidity, and possibly press releases I can't see either of
these problems deminishing in the near future.

My understanding is that once Eric Watson reachs the 90% threshold he will
effectively write a cheque to the remaining shareholders for the offered
amount of 176c. The only way he would pay more for the remaining 10% is if
he was challenged as to the fair value of the company. Dare say this would
cost a certain amount of money, time and probably legal action. The only
people that 'may' be perpared to do this would be institutions, the average
small shareholder wouldn't have the money or time to make it worth
challenging the fair value of the company.

In the event that the takeover offer does not succeed I wouldn't think Eric
Watson would be to concerned as there is always next year, and there will be
another $12m sitting in the
bank that I imagine he would be happy to get his hands on.

Then again he may be prepared to offer more for the remaining few shares so
that he can delist the company and make more money by not having to send out
annual reports, comply with stock exchange rules etc.

There are obviously a couple of people who feel that Eric Watson may be
prepared to pay more than the 176c given the shares have traded at up to
180c and currently at 175-178c although it is mostly low volume (under 20k,
except for the 8th at 2,245k)

I would expect alot of small shareholders would happily take the offer as it
is a 20% gain on the recent historical shareprice and an opportunity to get
of a share that does not appear to be performing very well in terms of
shareprice.

I guess the risk of not accepting the offer is that the takeover does not go
ahead and you are stuck with shares trading in the 140c to 150c range for
another year or two. If you hold on you may get 200c per share but I can't
really see much more as Eric Watson is looking for a really good bargin,
rather than a fair deal.

Couple of questions.
1. Can Eric Watson still cancel the offer given it is a notice of intention?
2. When does the offer come into full force?
3. How long do you usually have to accept the offer?
4. Once the 90% threshold is reached how long does it usually take for the
remaining shareholders to be paid?

Any comments would be appreciated

Disc. Have some and trying to decided whether to take the money and run, or
hold and hope!


-----Original Message-----
From: owner-sharechat@sharechat.co.nz
[mailto:owner-sharechat@sharechat.co.nz]On Behalf Of george soros
Sent: Wednesday, 10 October 2001 12:34 p.m.
To: sharechat@sharechat.co.nz
Subject: [sharechat] PRG,s Classic Bearhug


Is there any reason why no postings on Logan/Watson stand in the market for
remainder of the company? As a long standing shareholder of this company
could this be yet another case of oppression of the minority sharholders
that the aforementioned have shown in the past that they are so good at?
I,m no accountant but my high cost beanies, who have sifted through PRG,s
creative accounting in their annual report, tell me how can a company that
has gone from $8m to $30m in 3 years in operating earnings be only worth
marginally more today than Logan/Watson paid for it 3 years ago? Normally
the Pied Piper would be shouting good news like this from the rooftops, ala
ADV/SMR press releases of the past, but there seems to be a dearth of news
from PRG ever since he,s  taken over. Could this also be the reason that no
dividends have been paid ever since he,s had the reins knowing full well
when he owns it his hand,s are in the till and he,s kept the rewards from
the minority shareholders who are in the cold once again!
Some comment please!
Disc.  Significant long term holder of this stock and going long on it as
well.

_________________________________________________________________
Get your FREE download of MSN Explorer at http://explorer.msn.com/intl.asp


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/



----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/