Just some laws on takeovers.They cant be working together. It is...

Just some laws on takeovers.
They cant be working together. It is illegal. They cant accumulate more than 19.99% of the company without launching an official takeover. Unless they wait 6 months and then they can accumulate up to 3% every 6 months.

If, hypothetically speaking, one of them was to launch a takeover bid, it would have to be at a price that reflected fair value for MLX. ie. an independent experts report would be conducted and I can assure you the board would not recommend a bid that did not come close to this valuation. Remember the CEO holds over 7% of the company himself, so he is hardly going to allow some low ball offer to get through and essentially rip himself off.

On a break up value alone IMO, the stock is worth well north of $1.50 (provided tin prices dont fall through the floor and Wingellina is viable).

What these companies have is a blocking stake, meaning the other one will struggle to get a takeover through as a full takeover would be conditional on 90% acceptance. Seeing as both own over 10%, I highly doubt a takeover is likely in the near term. What is possible though for those that want to believe a takeover could happen is that they get into a bidding war with eachother as we are currently seeing in Herald Resources (HER) and it will get to the point where it makes sense financially for one company to accept the other ones offer.

My belief is that APAC is also a resource investor, where as Jinchuan is purely a resource producer. So I think APAC see's MLX as a very underpriced asset and is acquiring stock at these levels more as an investment than anything. I think they would be willing to sell out if the price was right and I think Jinchuan would be a little nervous seeing another company take such a large stake. If anyone was to make a bid it would be Jinchuan IMO. I suspect they would be discussing their next move right about now. I dont think a bid is likely just yet, but it is certainly possible.