is a takeover imminent?, page-19

I can recall phoning BRM and speaking to one of the directors over 12 months ago. At that stage, the board'ss clear preference was to seek joint venture partners to develop Marillana rather than equity partners in BRM for the simple reason that a JV partner's share of the rewards was limited to particular project (e.g. Marillana) and was not from the whole company which encompasses numerous other prospective areas, as yet virtually unexplored.

I don't see that anything in that scenario has changed since then. If anything, BRM's position is now even stronger in terms of wooing suitors for a JV as its resource is now better defined and there is a greatly increased interest from the Chinese now than there was then in assisting the development of alternative sources of iron ore to the Vale, Rio, BHP hegemony.

Given WR's ealier statement of seeing Marillana through from 'cradle to grave' and the board's continuing strong hold on BRM shares (as a good insruance against a hostile takehover attempt), I place no credence at all in speculation of a takeover - and the voluntary sell down of holdings by the BRM board that would be required to achieve it.

I see a lot of sense in Chinese investors taking an early and substantial long-term position in a company to whom they (or other Chinese interests) might consider providing development assistance in any one of its various possible forms.

Regards,
Bones