A forecast price-to-earnings ratio (PER) of ~16 doesn't provide a large margin of safety, nor does Wesfarmers' PER of closer to 18, given its large retail businesses could suffer severely in a slowing economy. We sold Wesfarmers just before the split, as we're currently buying better opportunities. The Good Trade Me recently received a non-binding bid from UK private equity firm Apax Partners priced at NZ$6.40 ($6.05), which was followed by interest from US private equity group Hellman & Friedman. A deal is far from guaranteed, so we reduced our position from 10% to 7% to reduce risk and capture some upside from the increase in the share price since the announcement. Given the amount of investment the company has made in recent years at the expense of short-term profits, we believe the deal undervalues the company and that it would be a damning admission from the board about its fears of future competition if it agreed to a deal at the suggested price.