The JV seems to be complicated. Xstrata want it, but dont want to act before Anglo/ARM issue is resolved.
Anglo/Arm haven't officially launch a legal challenge because they know it cant succeed. It can only cause disruption and delays. They want to use the threat of a legal dispute/delay to discourage Xstrata.
Then slowly bring NKP to its knees via lack of funding, until NKP cave in and sign a JV with them. =====================
Sorry but this doesn't make any sense. Think chess. Think Xstrata.
Given this move doesn't result in checkmate for Xstrata, at what point do they need to make a sacrifice to change the outcome.
its here..."bring NKP to its knees via lack of funding". So they inject cash to keep NKP going. NKP have to give up..what? Nothing, brinkmanship. If Xstrata don't we know how it ends.
Now ..think Anglo. Knowing it opens a play for Xstrata. What now? Take court action and see how it goes? Lawyers would be pushing this as most court cases are 50:50.
On another chess board, DMR is playing a bigger game, and so is Anglo. Does DMR want to lose its game? Does Anglo with DMR?
The question is whether Anglo see this as life and death, or if they see it as inevitable and try an extract a pound of flesh from DMR, or if DMR has some dirt on Anglo.
Finally, your statement "Anglo/Arm haven't officially launch(ed) a legal challenge because they know it cant succeed", if true means in fact all the above I typed show its nonsense moves finishing at dead ends or unpredictability, so Anglo and Xstrata are/will be behaving sensibly to get a deal because its a last resort. Anglo will still be trying some angle or other with DMR, but if DMR are smart they can see its a loser play, but thats DMR's problem.
NKP Price at posting:
32.0¢ Sentiment: Hold Disclosure: Held
