The SDL board probably needs to do NOTHING. I reckon their "playing along" with Han Long all that time was part of a strategy.
If there is a counter-bid (very possible), then the final price paid to holders could even better the 57 cents.
If these is no counter, then the hedge funds would exercise their blocking stakes and force Han Long to declare a FINAL bid (given IO price is heading towards $140 tonne), I would suggest the hedge funds would now NOT even entertain a "cosmetic cuts of a few cents per share from 57 cents" - as per the Street-talk reports back in August-September in describing the hedge funds position.
China is so vulnerable (it can't AFFORD to lose Sunadance) that it threatened to lower taxes on domestic producer and yet once it starts to replensish depleted inventory, IO spot price spikes north immediately...LOL !
Problem is Chinese domestic IO mines are heading towards an average grade of 10% fe. India has just turned off the export tap and is buying too.
SDL Price at posting:
32.0¢ Sentiment: None Disclosure: Held
