We saw with the Chimalco bid for Rio, concern that the Chinese Government would force Rio to sell iron ore to Chinese companies at below market prices. This reduces royalties and Australian income tax paid as makes us all poorer as Australians. Also, the Chinese Government has been very vocal about BHP and RIO ripping off Chinese companies by charging too much for iron ore. China has a long way to go to accept market based pricing. You don't see the US complaining because Toyota cars are too expensive
Yes the chinese turned the screws too hard too soon with Rio, but they did not demand iron ore at discounted prices. This would never be approved by any australian government, ever!
Just jumping at shadows with all this nonsense. China said pay up and arrow paid up.
We all know Arrow is going for about 30-100% cheaper than it is worth, but so was PES until BG jumped in.
Perhaps the directors recognise the full potential of dart's international holdings.
Perhaps they are aware that others will jump in once FIRB hurdles have been cleared.
Either is far more plausible and likely than the conspiracy theories being proposed.
Who seriously thinks the Chinese will jeopardise their relationship with their number 1 supplier of Iron ore, coal and soon to be Gas for the sake of 1-3 measley billion dollars?
It's just not logical. It is quite stupid actually.
AOE Price at posting:
$5.17 Sentiment: None Disclosure: Not Held
