Hmmm in their filing to the Korean Exchange SK Cowboys said "We...

Hmmm in their filing to the Korean Exchange SK Cowboys said "We have decided not to pursue an investment in Australia's Cockatoo Coal as a result of an internal review,' without any further elaboration.

So SK Australia signed a binding term sheet but someone didnt like the deal in HQ? Which means either someone here in Australia didnt get head office sign off or someone high up decided last minute to can the deal. Based however on a negotiated break fee of only 1% (i.e. $3m) perhaps SK Cowboys and COK always knew this might happen and perhaps their offer was rushed without internal sign off in response to another offer on the table? If I was COK i would have negotiated a much higher break fee to secure the funding unless you knew this offer was still subject to SK HQ sign off.

Or perhaps as Legume suggests with the SP falling and the premium over the VWAP growing ever larger SK wanted to revise a deal despite the 40% and four year no-takover clause being a key condition- i.e. pay a break fee now of $3m in order to perhaps get management control by the end of the year at the same price when all the debt comes home to roost? High risk, short-term strategy.

In any case still hard to rationalise what happened to this deal, it all smells to be honest. If we see a replacement deal being announced shortly could explain a lot though.