takeover, page-77

asf, to answer your question.

The difference with DML and IVA is yes, IVA has mostly cash and some loans from Turquoise Hill. But DML has debt with the bankers.

The problem was CFC made a takeover offer for DML at the near peak of the commodities. Offering $1.70, but the DML board got greedy and rejected the offer as too low and refused to offer due diligence to CFC. CFC was skeptical of the board's moves and pulled out of the offer. The latest quarterly report of DML shows that their cash costs far exceeded the spot price for copper added the negative outlook of DML. Then came the dramatic fall in commodity prices.

DML is now near bankruptcy and now salvaging for a new financing package to refinance their due loans.

It appears to me, no one is willing to bid for that company so DML is a dead horse.

IVA is different on the other hand, Rio wants to sell IVA at the quickest possible time frame. IVA isn't in financial distress as DML is, but Rio did provide a loan to IVA from Turquoise Hill. In return they do have control of the whole IVA company.

Whoever the end buyer is or whatever the final offer price is, its up to Rio to sell out IVA. Once its certain they won't care what happens to IVA or the minority shareholders of IVA. The new controlling shareholder presuming if its Dongxi will they call the shots regardless if they have over 90% relevant interest of IVA or not. All they need is Rio's 56.7% stake to control the company and board of directors.