With all this talk about Takeovers, I thought I would start a reasons for and against thread.
Reasons Supporting A Takeover
- Hanlong have positioned themselves with almost 20% of holdings. - Chinese are going to be tied in with rail, port, finance and offtake. - China already heavily involved with Cameroon. - It would make sense for China to want to cut out the middle man. - SDL haven't exactly welcomed Hanlong with opened arms - It would be cheaper and more profitable for the Chinese to take over the company.
Reasons Against A Takeover
- A takeover could ruin relationships with Cameroon and Congo Governments, putting the project at risk. - A takeover would be risky considering the mining permits havent been issued.
Conclusion
There are probably more reasons supporting a takeover, however the reasons against a takeover probably hold more weight.
SDL Price at posting:
46.5¢ Sentiment: None Disclosure: Held