why the audacious bid might make sense

Some "Devil's advocate" food for thought in considering the Wah Nam bid.

WR and team are still yet to counter Wah Nam option of building a dedicated line, and in the absence of a "plan B" Wah Nam's alternative could be the ONLY way of getting Fe to port.

If Wah Nam can stump up the cash for the rail and capex, then are they in fact the BRM & FRS saviours??

The Merger of FRS and BRM makes sound economic sense in reducing admin costs (i.e. one executive team instead of two) and bringing significant advantages in combined port allocation (35MTPA combined).

Whilst BRM and FRS could of course "voluntarily merge" such an outcome is fraught with sacrifices that many Executives aren't prepared to make ... unless forced to by a third party.

The combined tenement portfolio of both BRM and FRS produces a very attractive long term Fe player with decades of resource at their disposal.

These are the arguments that Wah Nam need to make, as such arguments demonstrate that the "combined value" of the companies exceeds their individual value at the TO price.

Hence it is conceivable that shareholders could make more money actually holding Wah Nam stock.

Will be very interesting to see BRM's counter to this, as without a rail deal or development capital their counter arguments can only be based on "expertise" justifications .. which could well be meaningless without rail or money.