RE: RE: TATA dealStockwellday,
Part of the reason TATA wouldn't just take us out at current levels is the fact that we have a shareholder's rights agreement. I know it happened a long time ago so many people may not be aware of this fact.
https://www.nmlresources.com/pdfs/news/Press_Release_0507_April21_05.pdf
If anyone wants to take ownership in NML amounting to 20% or more of the company, the shareholder's rights plan kicks in. This is likely part of the reason TATA was held to 19.9% ownership in their initial DSO deal and subsequent increases to 27.2% were cleared by NML.
https://www.nmlresources.com/pdfs/news/NR0817.pdf
The reason we didn't see the Chinese or any other suitors step forward was because TATA had an exclusive right to negotiate with NML until March 7. I have never been a fan of the exclusivity because it prevented other suitors from coming forward but I am confident that we have a good deal in place today.
https://www.nmlresources.com/pdfs/news/NR1108.pdf
If the project were to begin today, NML would have a much harder time financing the additional 16-20%. I am glad the DSO is going to be operational before we have to participate in the taconite projects. 20% today or 36-40% in 1.5-2 years time.
Balkwillj