Ann: Kathleen Valley Funding Package, page-407

Hi Munky, next step is for Gina, now she has thwarted ALB, is to come in with a joint bid (with probably Rio) at around $3.50 as we are fully funded now but she needs TG and Board support. If it happens it will likely be before Xmas. It makes no sense for her to spend $1.3B just to get a capital gain and dividends over a few years. I first thought that was her play but I don't believe that now. Everything points to her doing this fast in a calculating fashion to get ALB out of the way. Mission accomplished but what now for her? She won't get on the board IMO because Tim (and family and friends) and the instos and us, the retail holders, don't want her. So what else? Expect an offer but it won't be hostile as it will be blocked. TG will need to support it so I am looking at around $3.50 in a JV with Rio. Nothing else makes sense to me as she cannot change LTR's future unless she either controls the Board (won't happen IMO); or she owns it. It is too expensive even for her but not with her current JV iron ore partner. The instos will be happy with a quick profit here and most of the shorters will be out. Let's see what happens.