Talison is an entirely different kettle of fish to GXY. It is currently foreign owned and it is being taken over by a foreigner(s) and therefore not an issue for the Australian FIRB.
IMO, GXY would be of concern to the FIRB even though its market cap is under the FIRB's radar of $300 mil.
If the Chinese Government is behind the Chinese investment in GXY, then the Chinese government ought to be more interested in Talison because of its bigger mine and better resource and lower costs than GXY.
IMO, there are 3 to 4 Chinese investors who now control GXY, particuluarly since the recent CR, and the fate of the SP over the next 6 months depends on what their intentions are. They may want: a cheap buy-out, short/trade the stock or stay put until the fundamentals of GXY are proven. By the look of the board, any of these options are possible.
If the Chinese take-over Talison, then, IMO, it will be only a matter of time until there is a bid for GXY and the longer that is the better it will be for retail shareholders. There is a reasonable chance, however, that the FIRB would block such a bit.
Just watch the market cap as it approaches $300 mil to see if it will smoke out Machiavellian Mao.
With kind regards Moorookamick
GXY Price at posting:
16.6¢ Sentiment: Buy Disclosure: Held
