...a further point to bear in mind, if worrying about RIO making a cheap takeover, is that if they take KAH over, they then wouldn't be able to buy any more meaningful amounts of EXT (either directly or via KAH), according to ASX rules AIUI, without making a general offer to all s/hs.
From recent comments to the press by RIO, I formed the impression that they're more interested in forming a JV than buying EXT. Bear in mind also that RIO themselves need to preserve cash right now and taking over EXT or KAH would cost a lot more cash than reaching a JV agreement. A JV agreement would add immediate value to Rossing, from RIO's POV.
I suspect that RIO would very much like to diminish the influence of Dattels & co, as they fear that those guys might cut them out of a deal with a 3rd party or squeeze them hard. It has been mentioned to me that ore could easily be trucked from Rossing South to processing facilities at Trekkopje, for example. By buying KAH & EXT shares in the market, it squeezes back & diminishes the Dattels' powerbase. However, I also suspect that Dattels & co have a few more tricks up their sleeves. I imagine phone lines stretching all over the world are running pretty hot right now.
IMV all of this is good news for EXT s/hs as it pushes the EXT SP closer to fair value. It makes sense for all the abovementioned parties to keep buying at prices well above the current one (as we're likely way, way below that fair value).
Once the Board structure is settled, then the race for votes finishes and the real talking about deals can begin. In the meantime, it'd be nice to see some healthy drilling updates. :0)
EXT Price at posting:
$2.16 Sentiment: LT Buy Disclosure: Held
