I am not sure what you are getting at, Noirua? Surely whether clearance is given or not for Yanzhou's bid, it will not affect the position of a counter bidder?
Perhaps if it is not cleared, any other bidder may feel he does not have to bid as high as he might have done, if Yanzhou was still in the picture.
Have I misunderstood something?
A 29% stake in Moolarben, 9% in Ashton and 49% of Yarrabee could net Felix Resources about $450 - $550 million and allow a cash payout of around $2.00 to $2.50 a share in dividends and cash returns.
Hi Quillan, If Yanzhou's bid is not approved then bids by Vale and Shenua would likewise have to be refused on similar grounds. The Anglo Swiss Xstrata, the American Peabody and Noble could hardly be deemed exceptable if Yanzhou are not.
I could not see BHP Billiton or Rio Tinto wanting to get involved after the above.
So I think Yanzhou's bid will have to be accepted by the Aussie Authorities as not doing so looks to be quite complicated.
Hi Noirua, Thanks for your explanation, Silly me! It didn't occur that if Yanzhou was turned down it might prejudice other foreign bids. I was only thinking of OZ bids.
Have you slipped up on your latest post when you quote the figure of $18.50?
Surely the bid, including the October Dividend of 50 cents, totals $17.95, Have you conjured up another 50 cents for us?
If so, another Tinnie !!
Add the 5 cent cash value of the SA spin off, which I assume is valuing The SA propeties at the $10m cash injection, or say 5 cents a share.
Would you hazard a guess of $100m on SA, just for the coal deposit? There's a reason the Directors wanted to hang on to it. After all, they own half of it approx.?
The date for approval by the Australian Authorities for the bid by Yanzhou coal has been pushed out to 10th October and is now set to put a squeeze on the original timetable, set for the end of September.
FIRB says China should expect more knockbacks
The Foreign Investment Review Board (FIRB) has given a rare insight into its decision making process, revealing that China should expect some future bids by its state-owned firms to be knocked back.
Patrick Colmer, one of the four directors of the FIRB, spoke at a China-Australia investment forum in Sydney on Thursday, as the regulator requested a bid by China Nonferrous Metal Mining for local miner Lynas Corporation Ltd to be cut to less than 50 per cent, and as the Defence Department objected to another deal on security grounds.
The FIRB's request adds to a growing list of objections to Chinese companies trying to get a greater foothold in Australian companies, particularly resources.
''In the resources industries … our government has expressed a preference for projects which are joint projects in various forms,'' Mr Colmer said, according to The Age.
''We are much more comfortable when we see investments which are below 50 per cent for greenfields [undeveloped] projects and around 15 per cent for major producers," he said.
Relations between the two countries have been strained recently, following the detention by the Chinese government of Rio Tinto Ltd executive Stern Hu and Australia's rejection of several other proposed Chinese investments earlier this year.
However, both the Chinese and Australian governments have endeavoured to play down the severity of any deterioration in the relationship.
According to The Age, Mr Colmer said in the past 18 months the FIRB had received 90 investment proposals worth $34 billion from China.
While most were approved without issue, Mr Colmer warned investors not to try to bypass the FIRB.
''We are happy to work with companies, so talk to us early, don't turn it into a legal stoush, and deal with us the way we like to deal with you, which is in confidence,'' Mr Colmer said.
Talk over tougher FIRB criteria have led to Felix dropping significantly below the bid price today..
Might they request the bid from Yanzhou Coal to be scaled back to under 50% ?
The FIRB wording of "some future bids" could be significant? It's a bit hard on Yanzhou to be told to resubmit its bid, which it has done, and then to be told later that we don't want you owning one of our precious resources.Hence why the word "future" maybe was used?
Of course we want it to be cleared and then for the white knight to come charging in.
If it isn't cleared, would that just leave BHP and Rio, or could Xstrata be in the frame, since they have a presence in Australia already, and the synergy of being neighbours could be influential?
Significant price recovery today, but could that be due to the announcement of Results?
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