In my OPINION, the fact that Xiao has done a runner (leaving wife and kids behind) and zhu also trying to flee suggests to me that China Inc wants them NOT to give evidence about the insider trading probe. Australia is a lenient jurisdiction when it comes to white collar crimes such as this (whereas in China you cop a bullet to the back of the head). Hence, there guys must be under trememdous pressure from Beijing to flee home.
China clearly isn't cooperating with handing Xiao back.
All this is to serve the following purposes;
1) To frustrate the legal proceedings so that Han Long can be ditched and replaced by another Chinese suitor (before Han Long is found guilty).
2) Spare China Inc of embarassment and himiliation which has future implications of chinese investment in Oz resources.
IMO, there is absolutely no way that Han Long will now acquire SDL. Certainly any entity acquiring SDL can't do so based on the previously prescribed time table.
Would I rather Xstrata or Anglo American offering say 66 cents (compare to a 70 cents Chinese bid), YOU BET YOU !
SDL Price at posting:
35.5¢ Sentiment: Buy Disclosure: Held
