Do the Chinese have any option other than to take this company over? I know the current price does not reflect that a 35 cent bid will eventuate but if they do not put forward a reasonable offer then they are at risk of being out bid by another party and will therefore see a significant loss on their investment. If they (or any other company) don't bid at all then the bank calls in the loans and DML gets sold off. The Chinese again might not be successful in securing the asset in receivership. This worst case scenario will see them lose all of their investment (along with the rest of us)
The asset is still world class but has suffered due to poor management decisions.
Can anyone think of a reason why the Chinese will not bid?
DML Price at posting:
21.0¢ Sentiment: None Disclosure: Held
