takeover, page-37

Colin,

its too early to see who will look stup1d for now...

But we must distinguish the facts and "hopes" or "emotions".

Bob Vassie was appointed as MD and CEO to replace the interim CEO Ines Scotland, who is a Rio Tinto executive.

Bob's role is to be a permanent MD serving as the highest executive officer and his first line of duty is to streamline IVA's operations, cut costs, optimize IVA's operations to the best efficiency.

Bob's role isn't to call the shots on behalf of the board of directors, if you are familiar with corporate structure.

The board of directors will decide whether the deal such as a takeover is a good deal or not. Given that Turquoise Hill Resources, a Rio Tinto controlled company, holds 56.2% of IVA, they control the board of directors with the highest number of Rio nominees on the board inc. the Chairman's role Peter McMahon is a Rio nominee.

Is it up to now the independent board directors known as the "Independent Board Committee (IBC)" to now assess this takeover offer from Shanxi Co. whether its in the best interests for the non-Rio shareholders of IVA to accept the terms of the deal. Those members being Jim Askew and Kyle Wightman.

Again Rio is accepting this deal subject to absent of "any superior offer", so it is not a done deal yet, as they want to "force" other interested parties to show up and make a counter-bid with a higher offer in the "shortest possible time"

The independent board of directors are aware of Rio/Turquoise's position in assessing the deal. So in my opinion I think they are likely to either state two (one or the other):
1. reject Shanxi's offer as it undervalues the company
2. or don't believe Shanxi's offer values IVA appropriately, but due to the absence of a superior offer and Rio accepting the offer triggering a change of control of IVA. The directors recommend its in the best interest of shareholders to accept deal, whereby the disadvantages of being a minority holder in an company with illiquid trading volumes is something to think about.

Wrt to your comment about M&G, they are a fund manager (who knows what their view is in relation to the takeover) they will decide on whether accepting the deal or rejecting the deal based on their financial situation. Eg. if they are in the money with this takeover, I can't see why they won't accept the deal. Depends also on their cash reserves, eg. they have more stock holdings in other companies and less cash on hand, they may want to cash out. But what they will decide on is in the best of their own interest and NOT your interest. So there is no point assuming they will reject the offer outright (I'm not saying that it could not be a possibility). I think they will wait and see what the situation and then make a move (whether its accepting or rejecting).

Also who knows, the independent board make extract a "sweetened up" improved offer. We will see.