I understand the Pellegrino 2 report will provide an independent valuation of Poet which should set a potential floor price level for a buy-out offer.

As part of their calculations they will consider the potential revenue from licensing agreements, but my question is could the report also be used to determine the conditions of any actual licence agreements themselves?

I.e. – Pellegrino value Poet in military sector at $10bn – Poet sell licences to BAE (30% of military market) for $3bn (spread over relevant time frame).

Appreciate this is a very simplistic view of negotiating licence deals, but it’s the principle I’m interested in.

NB – All numbers are made up for illustrative purposes.

Thoughts appreciated.