It looks to me like this will fall through and that 1% that SDL thinks they will get will probably be avoided via SDL failing to meet a technicality in the contract.
All you need to do is look at the headlines like this to know that this deal is not looking like it's going to happen. Front page of Business Insider right now: "Profits At China's Biggest Steelmaker Fall 53%—And The Wost Is Yet To Come" http://www.businessinsider.com/baosteel-profits-fall-53-2012-8
Are the Chinese really going to spend $1 bilion plus on the buyout and then another few billion on the capex for a project to mine a commodity that is cliff diving right now? More to the point, who are the competing bidders? In my opinion the Chinese are the only ones who are confident going into Africa nowadays (due to government support) - we dont see anyone else coming to the table in this environment and Hanlong know it.
Unfortunately it doesnt look like SDL have a leg to stand on right now... :/
SDL Price at posting:
32.5¢ Sentiment: None Disclosure: Not Held
