Acquisition of Dioro by Avoca

[JenRich]

Hi

I have some DIO shares and DIO has been acquired by Avoc and I have received a compulsory acquisition notice, and SPA 3 is not indicating buy or sell. Should I sell irrespective of what SPA is saying ? I don't particularly want .325 Avoca share per Dioro share.

Richard

[Tim Sutherland]

Hi Richard ,

The offer seems fair to me being the equivalent of 128.8 per DIO share on todays price . Don't forget that you receive 65 cents cash as well as the .325 for every share .I doubt whether you would receive that selling DIO today - but you may . I guess the short answer is - whatever suits you best  ,as there is nothing in the price . Of course there has not been an entry signal on AVO but you could justify the entry by the takeover . The simplest would be to sell now and wait for another buy signal on another stock . Then you put it behind you and move on without looking back . Just note the sell signal as " other " and record it as an alternative to compulsory takeover .

Hope this helps ,

Tim

[MikeC]

Hi Richard,

With DIO I believe that trading is now suspended awaiting the compulsory acquisition of the remaining shares which I gather from the letter could take at least a month.  I feel that this is too long to have my money tied up with a dubious result, when I could be getting into better trades.  I was lucky - I managed to sell DIO 5 minutes before the suspension of trading.

Gary's suggested trading plan regarding takeovers says hold for 20 days pending a better offer, then sell if none is forthcoming.  This will only apply if you are holding a share that subsequently is the subject of a takover offer.  Unfortunately I didn't check the ASX website for announcements before buying DIO, which is contrary to the trading plan.  Won't do that again!!

Good trading,

Mike