zài jiàn, page-39

I know a lot of people are frustrated with the progress but when GJ comes out on the record, on several occasions over a period of time, that SDL is in negotiations with "international mining companies" i.e. Xstrata, RIO, BHP - that is a big statement - you can bet on it.

I know that a lot of people are frustrated and some even skeptical of these claims, but just like Ferrous that BHP are planning to takeover, Ferrous never had an ann saying "we are in talks with BHP, watch this space" or "we are on the cusp of coming to acceptable terms with BHP for takeover"

NO! you didnt! (from what I can see on their website at least)

Instead, these types of negotiations are confidential, and as I've posted before, and I'll post it again:

"Pro-forma merger/ aquisition contracts that law firms use, ALWAYS contain 'confidentiality' clauses.

These clauses basically say that "during AND AFTER formal negotiations in relation to terms of a merger/ aquisition / JV of SDL , SDL can shop around, receive competing or superior offers, talk to others. In the mean time, you give us all the documents we need of your company and its operations etc and we, the BIDDING COMPANY will do our due diligence. So SDL give us your internal company info, we promise to keep it confidential and not make copies of them, we will send them to external independent experts, they will tell us what they find, we will speak to our Chief Financial Officer and his consultants yadda yadda BUT IN THE MEAN TIME YOU DO NOT release the identity of our company nor of our officers etc etc"

Why do bidding companies do this? Because the bidder company often has operations Australia or even worldwide. As such it does not want its hand out in the public.

A company does not want to show its hand - so it can make strategic moves under the radar against its competitors - so its competitors dont know what strategic direction its heading. As such, this can protect the bidding company from things like fake dummy bids made by competitors to up the acquisition price - or worse still - get the competitors to buy on the market and up the SP meaning that any offer will need to be more of a premuim (as the VWAP is higher) - for an illustration of this, watch Wall Street and see what Gordon Gecko does to Anacott Steel - cheesy movie, I know, but it illustrates it spot on - see also the current saga with Metgasco and rumors of several companies soaking up its shares competing against each other."

I agree with others here that the conventions are the major hurdle. But the fact that these international mining companies have been speaking with SDL from months back, and are still doing so, speaks a lot.

Just thought I'd put that perspective out there since Mudguts, a long time holder with us, decided to bite the bullet.

All the best MG, and good luck all.