Good Reader Comment in FTAfter the article "Rio's Bid for Turquoise Hill hits Snags" a woke reader posted this comment:
"What Rio has tried to do in the backwaters of the Canadian capital markets is appalling. Despite their huge investments in Quebec, and the thousands of people they employ there, the Quebec securities regulator has rightly called them out. But why would Rio risk its reputation and government relations in such an important place for them just to save a few loonies? Rio tried something similar in Australia a couple of years ago, which also damaged its reputation. This company NEVER learns. There is a need for root and branch house-cleaning. The reputation of Rio is, sadly, in tatters. And as the big dividends begin now to drop off, maybe some of the sanctimonious ESG champions like Legal & General will start to raise the alarm. Jakob is clearly not up to the job. Dominic Barton's Canadian connections did nothing to steer Rio away from this disaster. And what must Mongolia and other host governments around the world think? If Rio is prepared to take these risks to take OT fully private, what its it trying to hide? An ICG report on mismanagement that it has NEVER taken responsibility for. A GOM "reset" that amounted to nothing beneficial, but got paid for with $2.4B of TRQ shareholders' assets. An independent minded CEO, Quellmann, fired simply for trying to raise low cost funds to complete the project. And 2 years later, we have Rio implicitly threatening TRQ minorities with being wiped out through a high cost dilutive equity offering?! No wonder Pentwater is angling to keep its "oppression" claims in Canada. No wonder Rio wants to keep it all quiet in a confidential arbitration (with the usual non-disparagement stuff)."
Blame Bold Bataar? Who knows. Fix it RIo. Show us all some more money. Copper was up big again last week, more to come, price is not coming down. TD's fairness opinion based on $3.50 long term CU is very favourable to Rio, but they will have to adjust that sometime soon.
cg