why are Polo buying - The Brker Ambrian thinks that it is because they know that Rio will launch a takeover bid, so they are building a position in anticipation of this Move.
Refer to the article below:
STOCKS NEWS Reuters Results diary
Stocks on the move [HOT-RTRS] Real-time Equity News [E] [WEU/EQUITY]
08:35GMT 31March2009-Kalahri up; Polo Res ups stake in Extract
-------------------------------------------------------------- Shares in small cap miner Kalahri Minerals (KAH.L) gain 4.6 percent after Extract Resources (EXT.AX) (EXT.TO), in which Kalahari Minerals has a 38.85 percent stake, announces that Polo Resources increased its holdings in Extract to 5.7 percent.
"These purchases are testament to the value that Polo Chairman Stephen Dattels sees in Rossing South. Dattels," says broker Ambrian.
However, Ambrian analyst Brock Salier says: "We don't think Polo will prove to be an eventual buyer, but more likely has seen the value in the asset, and will certainly demand a hefty takeover premium in the advent of any future takeover bid."
EXT Price at posting:
$4.49 Sentiment: None Disclosure: Not Held
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