Potential
As previously said this board is now at the mercy of FAS. every vote is now going to be critical and even elimination of the FAS aligned directors will not solve the problem - in fact it will make it worse. Calculating in the 8 million shares and options will provide FAS with a 40% holding in GWR.
this is simply too powerful a position to hold or defend against - if BHP had 40% Rio then you will find the majority of smaller shareholders will align - the principle applies across the board becasue I can hear the doomsters say but BHP has resources (but they would also incur significant debt)
Subsequently you may hold GWR when FAS gets to 51 % (they have another 10 months to get there)and you are then sitting in a company controlled by another - they will develop resource at own pace which could mean a big slowdown whilst concentrating on FAS reserves.
the beiggest beneficiary of a JORC upgrade will be FAS so it is really Catch 22. It is no longer about comparing share prices - it is now about who has the greatest ability to progress the company and unfortunately it is no longer GWR. at 25% FAS maybe but now the % is way to high.
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