There are many people knocking on EXT's door and if there is a takeover offer within the next 12 months this guy is going to walk away with a pile of cash for not very much, why would you give that sort of money away?
What does he bring that makes that money worthwhile given the likely outcome? I think it is possible, just possible, that his time on RIO's board and his time running Rossing gives him personal contacts and influence that others may not have.
What does that influence bring to justify the pay? I think it may have something to do with the negotiations over a table at Rothschild's vs discussions at the old boy's club in London over brandy and cigars.
I think it is possible that a few words sitting in deep armchairs may bring some dividends. Words like "I know your boys are playing hard ball on the price and they're doing a great job but I've got to tell you the Chinese are ready to close on this, your hard negotiating might leave you with nothing".
Words like that from a guy who was a fellow board member could do more than many expect.
EXT Price at posting:
$7.44 Sentiment: Buy Disclosure: Held
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