Dolc, I don't think that Xstrata/Glencore persisted in 6 months...

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mic231

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24/04/15

14:42

Post #: 15150522
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Originally posted by dolcevita ↑

If Xstrata offered a bargain basement price and AOH accepted, you'd all have been screaming 'sellout'. Everyone's an expert? Some people like to just be negative.

Surely a more plausible the reason for the sudden about-face in not exercising the option was related to the management battle over who would control the new merged Glencore/Xstrata entity.

In case you hadn't noticed, at the time when the option matured there was a battle for control over the new merged entity and the Xstrata CEO was starting to lose out and the entity was giving conflicting signals while this was unresolved. Glencore made a series of misteps after that and is now on the acquisition trail.
The former Xstrata CEO has started his own company. I have posted about this before.

Surely it wasn't just about price, and AOH holding out unreasonably. Surely it is relevant that there was a battle going on with Glencore and when you have such instability, you will get layers of management which says one thing and others saying another. You have upper echelons at loggerheads, it doesn't help with consistency in decisionmaking.

This is an old story, but I'm fed up with hearing about how it was AOH's fault, and AC's management in particular. For some reason people are nervous about mentioning his name, as if you aren't implying it clearly.

I don't think anyone seriously can claim to have all the facts, and in the absence of them IMO you shouldn't slag off AOH management.

Be reasonable. Look at the other conditions which applied and try to draw some other conclusions apart from just AOH got it wrong on price. Seriously.

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Dolc,

I don't think that Xstrata/Glencore persisted in 6 months of negotiations with AOH because of internal tensions and conflict. It was always about price. The center piece of the agreement framework we had with Xstrata was the independent valuation of the project's price, which Xstrata was obliged to accept.

Secondly, it's okay for shareholders to express concern that AOH management might have too higher price expectation for the Cloncurry Project. We all have different needs.

AOH Price at posting: 10.5¢ Sentiment: Buy Disclosure: Held
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