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Bare Trust Could Help Burswood Deal

9 July 2004

AUSTRALIA – As reported by the West Australian: "Kerry Packer yesterday jumped to 26 per cent ownership of Burswood as market insiders speculated the formation of a "bare trust" could help win over institutional shareholders hamstrung by the conditions of the $715 million bid.

"Mr Packer's Publishing & Broadcasting Ltd revealed it had won acceptances for another 24 million Burswood shares since lifting its stake to 19 per cent on July 2.

"..The offer has since been increased to $1.46, but is conditional on reaching 90 per cent acceptance and receiving the approval of the Burswood board.

"Burswood directors, however, have refused to back the new offer, which is still below the company's valuation range of $1.52 to $1.68 a share, saying they cannot guarantee the 90 per cent acceptance level.

"…A bare trust is a legitimate mechanism to allow institutions to effectively sell into the bid without breaking any takeovers rules.

"The shares would be transferred to the trust, and counted among total acceptances, but the trustee would be under instruction to physically sell only if certain conditions were met…"

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