china deal?, page-29

I stand by my comment on mgmt getting a free ride if the offer goes through. Securing funding and developing a mine require considerable effort. Running a cash box is easy, and history in the private equity industry shows managers have the most to gain from such entities.

By accepting a less than adequate offer for a great project, management/board are foregoing production upside in return for not having to deal with the pointy end of a development. I could understand if it was a great offer.

Ultimately, this offer may be the right decision. It is difficult to determine if the muted price action this morning is a low probability outcome on the offer or a statement on the amount being offered.

If you sell a known quality asset at a deeply discounted price and buy an unknown asset at a deeply discounted price are you ahead?