OK, if people want to believe that Xstrata will just pay whatever the independent expert gives in his valuation, that's fine. But try looking one step further.
The advantage of entering a JV with Xstrata is the availability of the EH Mill. The JV will have to negotiate terms with Xstrata. Altona could easily be squeezed where it hurts at that point. It makes much more sense for terms to be established when the JV is set up. So some horse trading is likely. This will I expect be reflected in the final deal price.
AOH Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
