If RIO took over KAH resulting in 55% of EXT they would then have to also offer a takeover to EXT shareholders, as they have exceeded 20% control - as I understand it.
OTOH, I wouldn't mind too much going ahead with developing the mine with Rio as a 55% shareholder. By 2014 back of the envelope figures show we should be getting dividends of about $2 per share*, that should continue for 50 years or so, very nice for a $7 investment today.
*15 Mlb pa, dug up at US$20 per lb, sold for US$70 per lb, 240 million shares after dilution and/or cap raising, exchange rate A$1 = US$0.80, 50% of profits distributed as dividends. You can work out your own variations on this theme.
EXT Price at posting:
$7.61 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)