About 6-8 months ago we anticipated a takeover of Union Resources Ltd (UCL.ASX) by Minemakers (MAK.ASX), and that day has finally come. Unsurprisingly it was a 9-for-10 script offer, and it was rejected. Both companies are vying for the opportunity to develop the Sandpiper phosphate deposit in offshore Namibia; after the JV company delivered the feasibility study. The study suggests an appealing return; though unsurprisingly the project cost is substantive. Leave it to an industry major to enter the fray in coming months and buy out these companies. The stalemate will ultimately be decided by outside interests because these two companies don't have the resources to launch such a large project. Might that major be BHP after their failed takeover of Potash Corporation of Canada? Maybe Potash Corporation? It really does not matter, as you go with the resource. I'd wait however for the stock price of these two companies to settle.
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