Pandev - while I have been of the view that there is "likely" no other suitor and we are in a bind with HL. I think reading today's news it is now starting to turn slightly in our favour. Long way to go but some interesting pieces coming together:
1. UBS. Balance of shareholder power is not with HL anymore by the sounds of it. 2. NDRC probably did stipulate a price privately and HL is carrying this out. (They wouldn't do it overtly as it would look like a private company problem and decision rather than a China Inc one) 3. The world is seeing that China is "looking" dishonorable in this deal. You can play the same trick once or twice, but then when people wise up to you, it is over for your reputation. 4. Africa must be thinking of the consequences of getting into bed with these guys too deep. Maybe a "spread" of international investors would be better for them. If I was Biya - I would be thinking that I am the next to get screwed. 5. 40 cents is so insulting that it will push even those like me (who would be happy with high 40/s 50c over the line given the situation. Not happy at all with 40. 6. GJ might have something up his sleeve. the reference to "alternate plans" sounded confident. 7. UBS became a substantial shareholder recently. 8. While we are seeing lows and industry structural change pushing IO prices lower, there seems to be increased commentary that we are at a trough. 9. The damage (hope any Chinese spies are reading this) to China's reputation and goodwill is enormous. While business is business, this brings shame to HL and by implication,the nation. Good luck with future negotiations - you will need it. Remember WIN WIN, not WIN LOSE.
A debate being held via media channels through third parties is intriguing. The SDL saga would make a very interesting movie!
All in all, I think that there maybe a real PLANB, hence my thoughts.
SDL Price at posting:
33.5¢ Sentiment: Hold Disclosure: Held
