DRS, the answers to your question can be found across my...

DRS, the answers to your question can be found across my postings today. Essentially the Chinese don't want to set the floor in particular one that is already associated with some kind of SOE involvement. Imagine the NDRC & CDB approve a 45c takeover with term sheet stipulating that to be a resonable price only for a Jindal/Posco joint bid comes in at 55c hypothetically speaking. The loss of face for China would be tremendous if the Chinese have to wrestle the bounty back at an "unreasonable price". On the other hand, if a counter comes in at 50 c the Chinese can always use the recovering spot price to restore the original 57c bid arguing it has funding flexibility no longer constrained by Hanlong. Having said that, the Chinese may have no choice but set the floor which is risky for China. You see the acquisition price of Sundance is the small part of the total cost hence if competition sees the Long life low cost massive resource as a steal over time then China can be trumped by a massive margin in the acquisition price if they cone in at 45c.