Ruralco did not buy a blocking stake in order to have some input...

Ruralco did not buy a blocking stake in order to have some input into another companies takeover of elders.
They are well aware of elders synergies and that it is in the turnaround phase.
Strategically its a glove in hand fit so Im sure their intentions are for a merger.
Having said that, there are other outfits who will be prompted to make a tilt for elders while they can as 10% from Ruralco and 10.5% QBE does not preclude a takeover.
Ruralco knows this and will continue to increase its stake as quietly as possible until (or when) a rival throws their gloves into the ring.
Its going to happen faster than you think.
People in this forum have suggested the Auto and Land are the stumbling blocks and I disagree.
The land will be sold (even if its at a lower price than book) but Futuris is a great asset to have as it could be spun off or just sold. Its a solid and worthwhile independent company with a future that can be picked up cheaply in a merger/takeover.
The important issue for elders management is to of course prove its a turnaround while at the same time holding off any hostile takeover.
Elders needs to ditch its previous strategies of simply paying down debt by issuing a company buyback with the proceeds ensuring a share price lift and forcing any rival to pay fair value which is well above the current price as realised by all.
Remember Ruralco has 10% of elders for only $M10.
I for one as a large shareholder can see more benefits in this strategy than having elders pay off debt with shitty share price at near all time lows making it an unresistable target.
Elders needs to adopt a defensive posture to achieve proper shareholder returns.