Surely it capital raising that has been used in this investment...

Surely it capital raising that has been used in this investment strategy, not directly shareholders funds.

Secondly, many companies use investment in the sharemarket as a strategy, investing in an upward trending market. Have a look at the top 20 shareholders of most publicly listed companies and you'll find they are the banks and other financial institutions.

THR obviously had some poor advice and in the current climate most shares are taking a hammering. Have a look at your own portfolio. You Zinifex holders must surely be in the red and hurting. I have about two weeks to decide whether to sell on market for $1.05 - $1.08, wait for ZFX to up the offer or walk, see another bidder come into play or see some rationalality return to the market in the 2nd half of 08 and AGM into production.

All is not rosy though the RBA continue to deal their only card against rising inflation in raising interest rates.

Surely there is a better way to control inflation. Like expanding the economy to create more competition.

These company buyouts only go to fuel inflationary pressures.