chinese offer

Quite a few hurdles to get over.

New Labor government more conservative than Liberals when it comes to giving away Australian assets.

Like to see it get through the Foreign Review Board.

There is a massive difference between partnerships / JV and buying assets outright. We saw it with Woodside and we will see it again. Especially with a company that could be awarded a monopoly in terms of rail transport in the region.

Effectively, MIS gets taken over by the Chinese, expect MMX to get the rail.

Also given the fact that the offer doesn't realise the "full potential" that MIS shareholders are looking for - doubt they would get full shareholder approval.

At least with the MMX deal, or even a revised offer, existing shareholders can share in the upside. The main argument coming from the MIS camp is "we are providing eg.60% of the assets and only getting 30% of the capital" - watch an equilibrium be reached between MIS and MMX.

In this deal, its like the Chinese are saying "your valued at $1, we'll give you a $1.20, but you won't ever see the potential $2-$3.

Probably a measure to make MMX up their bid.

It will not succeed.

TheGimp