You would have thought that waiting for at least the Chinese offer as the worts outcome would have valued the transaction at $8.65 WITHOUT brokerage. This option also have the chance for a competing offer to appear best case scenario. I'll take my chance and hold when these potential scenarios are all I can anticipated.
The Chinese have revised the offer 3 times and it tells me that they are not only interested but willing to TRY and pick up the asset for as cheap as possible, playing to the negative world credit conditions and ask for an 11th hour approval of the mining license. They could have sit it out for 6 months if they didn't think the asset is that vital and let EXT & RIO thrash out the JV. That would complicate the transaction.
For once RIO is taking the easy way out not to rock their already battered Chinese relationship. Afterall this is not personal and only business and they want to control as many tier 1 asset so Albanese should do the right thing by their shareholders and make the bold move to wrestle this asset from the Chinese and leave diplomacy to the Aus Govt.
EXT Price at posting:
$8.50 Sentiment: None Disclosure: Held
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