Hi, Paul.

PE> I now have a letter (supposedly the second letter), saying I can now
PE> exchange 15 PLP shares for 1 Placer Dome share.  Do I want to do that?
PE> Apparently it is a "fair and reasonable offer".  BFN.  Paul.

Placer Dome (ASX code PDG) have made a take-over offer for Placer
Pacific. The offer is 1 PDG share for every 15 PLP shares. If you check
the prices you'll see that that's about right. The offer will last until
around the end of March (I forget the date), or until they have received
90% acceptance. After 90% you can compulsorily acquire all remaining
shares. This will almost certainly happen.

Oh, I suppose another possibility is that someone else will come up with
a higher offer. At this late stage this will almost certainly *not*
happen.

You have 3 choices.

1) Accept the offer now. This you do if you want to own PDG shares.

2) Wait until they get 90% when they will compulsorily acquire you. IOW,
   this is the same as 1.

3) Sell your shares now. This you do if you don't want to own PDG
   shares. You will receive approximately the same value, PLP are
   trading at 183 from memory, and I recall that there is in fact
   an undisclosed buyer (>$100k) at 182. PDG are trading at $27 &
   something.

It's your decision, based on whether you want to be in PDG after the end
of March, or have the cash for something else. Of course, whether you
get any *particular* price for PLP, and what PDG will be worth, depends
on the market at the time. Between now and when they get 90% or it
closes, you can be sure that PDG will be ~15 PLP.

Because if it weren't, I would be buying whichever was cheaper, and sell
the other, as an "arb" (arbitrage) opportunity.

Regards, fIM.

 * * You can observe a lot just by watching.
@EOT:

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