I understand the only condition remaining on the RMS bid for DIO...

I understand the only condition remaining on the RMS bid for DIO is FIRB approval, which is unlikely to be denied.

Given that RMS cannot withdraw its bid, I can't understand why RMS shareholders aren't trading the arb - ie selling RMS and buying DIO - its a no lose situation and an opportunity to make extra money. Its effectively an opportunity for RMS shareholder to buy back their RMS shares at a lower price.

In the process the price of RMS will go down slightly and the price of DIO will rise until there is a slight discount in the DIO share price, not the whopping 20c at the moment.

One reason its not happening on a large scale is that RMS cannot be shorted - so its only RMS shareholders who can do it. Its one for the retail investors given the lack of major liquidity in both stocks.

I see DIO as a buy at the moment, because I cannot see RMS at 36c in the short term. Unless I am missing something.

I also think there is every possibility of AVO stepping back in soon - wouldn't take much for them to get over the 50%.