xstrata, page-18

This really is a quite attractive position for SDL to be in if Xstrata does make a bid. Remember, this is all conjecture at the moment though. Let's consider the following though;

Xstrata places a bid at 60c per share, a 20% premium on the Hanlong offer. Hanlong either has to raise it's offer, or drop out of the bidding. If Hanlong raises it's offer, Xstrata may make a counter offer, or Hanlong's may be the highest we get. If Hanlong were to drop out of the bidding after Xstrata's initial offer, then surely it would spark the Chinese SOE's into action regarding this much talked about JV deal, because the Chinese wouldn't want this project slipping into the hands of a foreign miner who doesn't need Chinese finance to bring the project to fruition.

Fascinating, I'd love to be a fly on the wall in these meetings though! We just have to place our trust in GJ and Co that they extract the best deal for shareholders. I still think if the board sees a JV as a viable option to a takeover, they will still push for the JV.