Now that RMS is building a stake in DIO, AVO are in an interesting position. They hold 45% of DIO but cannot buy any more for 6 months under trading rules. However, if they where to sell their DIO shares to RMS it would give them about 25% of RMS (based on the 2 for 1 share offer) and a platform to take over RMS and thus seize DIO as well (assuming the RMS takeover succeeds).
Given that RMS own shareprice is so low while punters wait to see if it can bring the underground goldmine on stream, a takeover of RMS now makes sense if you accept the risk inherent in all startup miners (i.e. there is no gold).
My guess is AVO is running their ruler over the 2 RMS and DIO combined to see if it makes sense.
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