corporate rules, page-7

Thanks - I was simply noting that suitors (whoever they may be) have sometimes gone public with a proposal themselves where they have found they were making little headway with the board and where they think shareholders may have a different view. However, this is more the exception as going hostile is generally a pretty risky approach (ie I agree with your view).

For my mind, I am not sure who the suitor is - and we will have to wait and see. It may be CRM and UMC simply recutting the funding deal on a larger basis or it may be another party (BHP, Rio, FMG, wildcards) who has been stimulated into action by the threat of the CRM deal - especially the fact that significant offtake rights will flow to CRM - and the pickings of securing +100Mt of good quality ore (albeit wet marra mamba) at a low $/tonne cost.

Frankly I thought the CRM deal was not great for UMC - as it didn't demonstrate a certain route to port (ie I am not sure what CRM's actual rail plan was - tie in with FMG?) and it gave away significant offtake rights without funding project development. This is the same mistake that Golden West made - ie it has given away offtake rights and now has little leverage with which to attract / force terms on further funding. But if the CRM deal has flushed out a decent proposal from someone else then it might all have been worthwhile.

Whether or not UMC can legally get out of the CRM deal is actually unclear from their announcement - as it seemed all the conditions were for CRM's benefit - with the negotiation of the offtake agreement on commercial terms perhaps the only "grey" area. Though an incoming party could potentially get around this by getting CRM on side and doing a back-to-back offtake deal with CRM. Therefore, likely that CRM are involved in any negotiations whether it is a recut deal or another party coming in.

BHP/Rio's preferred route would undoubtedly be a minegate sale arrangement - and they would have preferred to have waited until some further technical work was done (eg hydrology tests) and they had sorted out their Rio JV logistic plans. How important the UMC ground position is for logistic purposes i am not sure. They would only bid if this was the only route now available to tie up what they want.

FMG a possibility if thinking a bit ahead - see other post, other Chinese - unlikely to compete with CRM - but could team up with them as CRM is not a steel producer.