Member Info for dflynch

CONTINUED FROM PREVIOUS POST It would be useful to campaign and coordinate a response to rejection of the ENK offer. I understand that an individual on the Interactive Investor I bulletin board may be carrying out that task. The contact is “enkvoteno” and they use the “gmail.com” for their email facility. I believe that they are collating the number of shares rejecting the offer and once 10% rejection has been achieved then the offer will be rejected. Shareholders large or small – every little helps so please vote for rejection of the paltry offer. Demand a better offer and a fair price for ENK! Non-executive directors STOP being SPINELESS! Your rationale for recommending acceptance of the offer is appallingly weak and condones the robbery of the smaller shareholder by the larger shareholders. This is not what you were appointed for!

If you hold your shares in paper form then once the offer has formally been made you will be contacted by the Company’s Registrar who will send you, inter alia, voting papers and information concerning the offer. If you wish to REJECT the offer then you can attend the Company meeting and vote either: in person; or, appoint a proxy to vote the rejection on your behalf. If you cannot attend the company meeting you can still vote by post or in some cases, on-line direct with the company registrars. If you hold your shares in a nominee account then you should be advised by the broker who manages your shareholding that the offer has been made. In many cases the broker will advise you that they will arrange to accept the offer on your behalf as the non-executive directors have recommended acceptance of the offer – as is the case for ENK. This is the default action by less sophisticated brokers (SELFTRADE is one unfortunate example) because administratively it is easier for them to accept in bulk rather than ascertain and collate individual shareholders instructions. Many Private Investors have in the past lost their valuable shareholdings because of this default and the inaction of other individual investors. More sophisticated brokers (TD Waterhouse springs to mind) will allow you to vote online before they pass the consolidated result for their nominee account to the company registrar. Although acceptance is the default action it is still possible to REJECT the offer. Rejection is achieved either by instructing your broker to REJECT the offer and asking for confirmation that this action has been taken on your behalf. Or you can attend the company meeting. If you decide that you wish to attend the company meeting and your shareholding is held in a nominee account then you MUST obtain a Letter or Representation. Without this letter you will not be admitted to the company meeting and you will therefore not be allowed to vote. Obtaining the Letter of Representation is relatively simple – you ask your broker to arrange it. The broker will contact the custodian of the nominee account who will send you the letter direct to your home address. Take this Letter of Representation to the company meeting and cast your vote as appropriate. In any event it is essential that you act quickly once you are notified of the company meeting as many brokers will drag their feet insisting that they have as many as 7 or 14 days notice in order to arrange the Letter of Representation! CONTINUED NEXT POST

This situation looks very similar to that experienced by shareholders in COSALT. They started a campaign, SORT,and managed to prevent the chairman David ROSS,of recent Private Eye and Car Phone Warehouse fame, from taking the company private after a failed attempt to purchase COSALT for a pitance. He was only able to make the poor offer to shareholders after years of obscure mis-management and failure to produce accounts etc etc. Read the CSLT board for a full account. The moral is that if you think that the ENK offer is unfair, and it is unfair, then get organised in the manner of SORT and block the takeover until such time that a fair offer is made. SORT required 25% to block ROSS and they managed to exceed this number from PI's by getting themselves organised. The required 10% should be easy for ENK PI's to amass and once the takeover has been blocked then either an improved or counter offer will emerge or AIM rules will prevent the present Joint Offerors from bidding again for 12 months - and how the world will have changed by then. Discuss. PS I dont have access to the II board so feel free to publish the gist of this there.