extract added to s&p asx/200, page-2

Hey there Gero and interested parties,

an email that was sent to me LOL

Disclosure:- holding till the very end
Harlee

"I have been saying for a while that the Chinalco deal will not go through and have said that it is inevitable that we will see a day when BHP takes RIO over. I personally look forward to that day, I think it will be great for Australia.

Given that RIO looks to be having a rights issue to raise the much needed funds my cynical view of the world kicks in and I start to think that we have all been played, including the Chinese.

When BHP pulled out last time RIO quickly dropped back to circa $30 (down from over $120 - breathtaking) and there was a lot of "what do we do now" thinking.

I think that RIO was contemplating a rights issue way back then but a rights issue at $30 is not as good as a rights issue at $60.

When the Chinese approached RIO and the whole Chinalco deal was announced I was puzzled at the board's and Albanese's embracing of the deal. It didn't seem to have a chance of succeeding and was clearly worse for RIO shareholders then the BHP deal had been and they resisted that, why would they be supporting Chinalco?

Well, I am bit slow on the uptake (as you have all no doubt picked up on over the years) and it took me sometime to understand that apparently embracing the Chinalco deal was only about raising the share price so that the rights issue could happen at a higher figure, that's all it was I think.

Therefore Marben's post where he talks about "the Chinese must be livid" rings true . Wouldn't you be livid if you had been used in this way? Led down the garden path when you never had a chance from the beginning? It reminds of many sad memories of girls using me to make other boys jealous and then dumping me once they had achieved what they wanted , (I am happy to receive as much sympathy as you want to give me).

SO this is what I think will happen from here. The chinese (who already have a relationship with Areva over the Uramin deal) are going to want to get some revenge. They are going to want to snatch something from RIO, something that RIO really wants and give them something they DON'T want and that is another processing plant right on their doorstep.

I think the Chinese will work with Areva now to take Rossing South. They will push this price into the stratosphere because we will have two serious suitors.

We will have China/Areva and we will have RIO/BHP. Yes, I believe that is possible, RIO and BHP. I think they are already coordinating the merging of Iron Ore operations and calculating the potential savings there and I think it is a natural progression for RIO to say "look we have another little thing you can help us with, something which will benefit you too, the largest Uranium discover in many decades!"