Hanlong have a strong cause to purchase hard assets on behalf of the Chinese state owned enterprises. There is a strong push by the Chinese to move out of their fiat currency and into tangible assets such as Natural gas, precious metals, crude oil, iron ore and other strategic metals.
We are now in the PACMAN phase of the markets..where the national sovereign wealth funds with cash in hand go on a supermarket spree. Majors with excessive liquidity will rely on Mergers and acquisitions to create growth.
If the market rallies towards the end of 2011, SDL's share price will rise. The execution date for the takeover is in 2012 and still needs approvals unless another offer gets put on the table.
The only groups that i would think of putting in an offer would be the majors such as BHP, RIO, or the Indians. Hanlong will not be putting in a higher bid as the management have approved on it, in my opinion.
Hope you guys get at least a $1 for your efforts.
SDL Price at posting:
43.5¢ Sentiment: None Disclosure: Not Held
