ext takeover price, page-2

Why would the Kalahari board support such a price (or is this a tactic to bring other bidders in)? I ask simply because Mr Honen has been described on HC as extremely "money focussed", so why agree to what we have previously deemed to be a low price?



From what I have read on bb's over the last couple of years I think quite a few Aus pi's don't really understand what Kalahari actually is..it is not an investment fund and it's main purpose is not to hold EXT shares for the next 10 years..it is a mining company with various early stage deposits that had major success with their Namibian property through EXT..because of this they put their other properties on the back-burner and went with EXT for obvious reasons..but clearly there is going to be a limit to how far they want to go with their investment and frankly that limit was reached when the prospect of a JV with Rio drew close..because that would mean that Kalahari would be effectively locked in to EXT for years heading to production and no easy escape route..that is why Hohnen always favoured a t/o not a jv..clearly it would be in the interests of Kalahari to maximise their investment in EXT but to realise a gain at the earliest possibility..this is where we are now with the bid having been drawn from the Chinese..also bear in mind that without this blocking stake of Kalahari EXT could have been acquired at a much lower price some time ago..so $11 could hardly be deemed to be low in that context..but I'm sure that Hohnen, like the rest of us, is very much hoping for a better offer to be flushed out on the back of the Chinese bid..if not he will be happy with a very significant return at $11 no doubt..in fact Hohnen has played this very well up to now imo