Turquoise Hill Resources Ltd. T.TRQ

RIO stock offer

[Absalom9894]

Believe offer from Rio Tinto will be voted down......Feel Rio Tinto should immediately offer 1 share of Rio Tinto for 1 share TRQ, this would require no cash out of Rio's pocket, it would not dilute Rio significantly as they have about 1.617 billion shares outstanding..... This would add about 98,000,000 shares, total outstanding would be 1,7 billion shares......This would be fair for both sides, it would be immediately acceptable. Again, no cash out of RIO's pocket, they can purchase RIO stock as generated cash allows.....They would own 100% of Turquoise Hill with Mongolia controlling 1/3 . TRQ will generate a great deal of cash for 50-100 years......They should offer this immediately after learning of vote failure with a close by Dec 1, 2022......They must make this offer without trying to squeeze more out of stockholders......This looks very fair for everyone and in my opinion will definitely fly.....

[VAN2010]

Sorry but  Rio will do Nothing like that. They will not even offer even 1 cent more. If the majority vote is NO, then minority shareholders have to cough up the development cost by buying more rights. And be on the hook for Millions could be a few Billion. It will be dark days with a NO vote. All these years holding the stock waiting for a fair valution will be wasted. Its a Take it ($43) or

[Skip57]

Let's assume a "NO" vote and the stock takes a 50% haircut (doubtful that big a drop).  Also assume a rights offering of 1 billion (also doubtful that much needed).  Therefore 50 million shares issued which represents a 25% dilution.  Remember that RIO has to participate fully or risk losing control.  The preceding is a worse case scenario.  A "NO"

[Absalom9894]

Also. One share Rio stock for one share of TRQ is about $5.5 billion for TRQ, this is still extremely cheap. The benefit for stock holders would be continued participation in one of the world's largest and most modern copper gold mines............... Rio Tinto, would be able to purchase the stock back over time, as cash is generated, the beauty for them is no initial cash out of their pocket