timing of jv announcement , page-5

Accaeric,

I say yes, you say no.

Nothing wrong with that as neither of us knows for sure.

This is my argument for the deal going through LCY:

Just think how stupid NMDC and especially Rana Som would look if they do the deal direct with MAK thus bypassing LCY.

For months now, both Rana Som and other NMDC officials have been spruiking to both Indian and Australian newspapers about LCY becoming NMDC's Australian arm and an exclusive vehicle for all their Australian acquisitions.

LCY issued sensitive market announcements to that effect on at least 2-3 occassions.
This means that the above statement of "becoming an exclusive vehicle" must be in writing and part of LCY's contract with NMDC or ASX would not have allowed it to be announced. I don't think I need to remind anyone about the case of ASIV vs FMG.

Can you actually imagine if NMDC did a dirty on LCY and signed a deal direct with MAK?

There would have been some serious repercussions.

Firstly, NMDC would have lost their face (a big no,no for an Indian public Co), but secondly and even more importantly, if they announced the direct deal with MAK before LCY's EGM (which is scheduled for an early December), they would have risked our shareholders voting "NO" to the deal of NMDC acquiring 50% of LCY.

Sorry, but that's not how you start a new business in a new country especially if you are a public govt backed company.

So, my money is on the deal going through LCY and I will eat humble pie if I'm wrong. LOL