update on the deal, page-10

Hi Praia
I think all the copper majors will have noticed that PMH is a bargain. The bid has done us all a favour.
BHP is a possibility and would likely make a cash and scrip offer.

The problem mid sized Coys like Capstone face making a bid is convincing PMH shlders of the quality of their scrip and may have to offer mostly cash.
Entrees scrip backed by RIO and Ivanhoe is attractive.

There are a number of moving parts at the moment and the next 6 weeks will be fascinating because of the following:
1 A stake is being built in GIR by Citicorp Nominees
They plus the largest shlder in GIR arent directly aligned with the directors so they may vote down the sale of the GIR stake in PMH to Entree
2 Citicorp Nominees is also building a stake in PMH.
3 RIO is building its stake in Ivanhoe
4 Ivanhoe has recently announced measures to protect shareholder rights in the event of a takeover
5 Ivanhoe and RIO must eventually rationalize their holdings in Entree
6 A second bidder will need to move by 31.5.10 to give shareholders time to weigh up both bids and see if there is a likelihood of a counter bid. To carry the day it would need to be cash unless they are BHP or another bluechip

I dont think Entree will be capping. It would be too risky in the middle of a Merger with ethical strictures on both parties.
I believe that capping is a possibility by another party.

Waiken