After reaching an all time high of Rs 185 on the 8th of September 06, the share price of United Docks Ltd (UDL) has since dropped by 40 % to trade at Rs 111 on Friday 6 October 06. Dramatically, this occurred right after the release of a letter to shareholders issued by Horus Ltée in which its strategy was unveiled once it would take control of the company. It was also stated that they value the share in excess of Rs 210. Had the statement of Horus Ltée been well received by investors, one would expect the share price to go up further and not the other way!

Hence the market does not seem to believe in Horus Ltée so-called strategy to unlock shareholders value. This has instead created havoc among existing shareholders resulting in a 40 % drop in the share price.

After a steady appreciation in the share price of the company from Rs 40 in July 2004 to Rs 185 in September 06, probably on account of the ambitious property development project at Caudan in association with Old Mutual Properties of South Africa, UDL share price on the stock market has recently witnessed large fluctuations. Shareholders were expecting an exciting business plan from Horus but quickly realised that its only strategy to give shareholder value is a simple asset stripping exercise for a quick capital gain. This will be at the expense of the Rs1.9 billion project and the loss of at least 50 jobs within the company. A fool and his money are soon parted……

V.T. (a shareholder)</B>