unsolicited approach, page-71

Hidili a major shareholder of EOC has financial issues.
http://www.reuters.com/article/2011/12/05/idUSWLA955720111205?feedType=RSS&feedName=rbssEnergyNews&rpc=43

Hidili share price has dropped from $12 2007 to $2.50 2011 this signals some type of problem. Hidili share price reduces their ability to raise capital. Their share price is trading at around 60 cents au and they have a negitive rating. This could have a flow on effect to EOC and their ability to raise capital. Hidili was probably an ideal offtake partner and source of finance.

Steel mills in China are reducing production. This is probably a proactive measure to prevent over capacity and reduce losses if the euro fails. This could explain why EOC has been moving more slowly than expected and conserving cash.

I think the unsolicited offer is more of a strategic measure to raise capital and boost the share price.