From the Sydney Morning Herald, interesting to see they think the idea of RIO buying out EXT have been dimmed overnight LOL
Extract Resources set for Chinese takeover Peter Ker February 1, 2012 - 9:51AM
ASX-listed uranium play Extract Resources appears more likely to fall into Chinese hands, after Rio Tinto sold a strategic bundle of shares overnight.
Extract has been stalked in recent times by the China Guangdong Nuclear Power Group which is attracted to Extract's highly prospective Husab uranium deposit in Africa.
The state-owned chinese group has been buying up shares in Extract's biggest shareholder - Kalahari Minerals - in a move that has been expected to trigger a downstream bid for Extract. Advertisement: Story continues below
Extract had been trying to cultivate rival suitors, but hopes that Rio Tinto may be such an alternative appeared to dim overnight, when Rio sold its 11 per cent stake in Kalahari to the Chinese group.
The sale means the Chinese now own more than 40 per cent of Kalahari and are close to the trigger point - set by the Australian Securites and Investments Commission - that would force a downstream bid for Extract.
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