In the latest round in Commander’s hostile takeover bid for Volante Group, the bidder has advised Volante shareholders to lock in their losses.

Responding to the Volante Group Target’s Statement released last week, Commander argues that the “hockey stick” earning outlook proposed by the Volante Board and independent expert Lonergan Edwards & Associates, relies on unsecured “contracts” with little supporting disclosure.

Describing a decision to retain shares as a “leap of fair” Commander CEO, Adrian Coote, attacked Volante’s record in meeting revenue and earnings forecasts and advised Volante shareholders to quite the company stock.

“As far as I am concerned, Volante’s board and management are treating their shareholders with contempt,” said Coote.

“The fact that the Volante Board is relying on unsecured and potential income to underpin their future earnings and valuation speaks volumes for how they treat their shareholders and the market,” he said.

“As a result of Volante’s history of overpromising and underdelivering, shareholders should be extremely sceptical that the hockey-stick earnings increase over the next 18 months, as foreshadowed in the Target’s Statement, will be anywhere near fulfilled.

“Volante shareholders, who saw the value of their shares plummet after the recent earnings downgrade, have to ask themselves whether they believe these blue sky forecasts.

Pointing out that it has been almost 6 years since Volante closed above its $1.70 IPO issue price the Commander figures show that shareholder value (including dividends reinvested) has declined by 1.6% over 3 years, 22.9% over 2 years and 37.7% over 1 year.

Commander is sticking by its $1.01 offer for Volante which is scheduled to close on 10 February 2006.