Very interesting watching what's going on with DML. Personally...

Very interesting watching what's going on with DML. Personally think the $1.70 / share bid from Cathay Fortune was designed to allow certain parties to set up massive short positions on DML at high prices. Average punter is gonna be reluctant to sell and probably inclined to buy when a bid's on the table at a much higher price thereby allowing the massive short positions to be built without smashing the share price. Cathay Fortune has slowly been increasing their stake in DML (over 16% now) so does seem like they're determined with their bid. Found the following document re takeovers:

http://www.mallesons.com/Documents/A_guide_to_takeovers_in_Australia.pdf

Talks about tactics used in takeovers. The section "The endgame - closing the bid" had a section "Remove conditions" as one of the tactics employed, which has just happened for DML:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01380855

I'm guessing the top 2 shareholders (JP Morgan and HSBC) need to accept the bid to get Cathay to the 51% mark:

http://www.discoverymetals.com/top-20-shareholders

Also, the 5 year weekly chart suggests the tide could be about to turn for DML with a tight spread and biggest volume ever in one week, maybe those massive short positions are being closed out.

Anyway, only been following the stock for a couple days so would be interested to hear other people's thoughts on what's going on.