[This is a transcript of a video report]
There's some very interesting share market situations that we are paying close attention to. Now the first of these is GrainCorp (GNC); it's in our takeover target portfolio. Graincorp has had two bids from US giant Archer Daniels Midland. The GrainCorp board has rejected even the higher bid of $12.20 per share, plus a recent 35 cent per share dividend has been inadequate and materially undervaluing the company. ADM has bought just under 20% of GrainCorp now, so it is very committed to this transaction and I do think that a price of $13 a share is quite attainable in this particular takeover battle. We will have to wait and see.
Another one we're paying close attention to is Echo Group (EGP). There's a couple things going on with this; on the one hand you've got James Packer trying to convince the NSW State Government to give him a second casino licence for Sydney. On the other hand, both Packer's Crown corporation and Malaysia's Genting have applied to the regulators in both NSW and Queensland to increase their respective stakes in Echo to 25%. We've recently reduced our holding of Echo a little bit but I still think there's a bit more to come in this particular situation. Genting in particular I think remains committed to taking a bigger stake in the company.