CP has played this brilliantly, for an initial $5m investment that has already increased in value he has got himself into a position where CTP will negotiate with him. That $5m was never going to get him 3 seats on the board, and it did not look as if he was interested in spending any more $$'s to increase his stake so I assume this was a play to improve his negotiating power only. He is probably interested in the coal, now that he has backed off you would suspect the negotiations will now begin on what he wants. The coal is pretty well useless to CTP, we dont have the $$'s to do anything with it so selling off part of it to CP maybe the way to go. CP maybe also be using this as a spoiling tactic so that the chinese dont get it as it would push down the value of his own coal resources, if the later is the case then CP may try to buy it will little cash but generous royalties on a resource he may have no intention of developing.
CTP Price at posting:
60.0¢ Sentiment: Buy Disclosure: Held
