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Ellerine traded below African Bank’s all-stock bid for a second day yesterday on speculation that the bid might be cut after an examination of the company’s books.

August 23, 2007 Ellerine traded below African Bank’s all-stock bid for a second day yesterday on speculation that the bid might be cut after an examination of the company’s books. The shares rose 95c to R71.75. African Bank stock gained 25c to R30.30, valuing the bid for Ellerine investors at R77.27 a share. African Bank is offering 265 shares for every 100 of Ellerine. The effective ratio will be 255 shares for every 100 Ellerine shares as African Bank will be reserving shares for black investors. The bank’s lending book would grow to R15 billion if investors approved the bid. – Bloomberg, Johannesburg