Here is the question for Cliffs.

Will it be cheaper for Cliffs to bid separately for FWR and NOT or allow this crazy bid to go through and then buy NOT?

By making this stupid stink bid, NOT has started the wheels in motion.

Mac clearly knows that FWR is worth much more than this but he likely wanted the luxury of doing more drilling before he had to face this situation.

Another question. Is Xstrata so occupied with their bid for Anglo American that they are prepared to pass on the chrome in Canada? Do they want to go to the expense of building a ferochrome smelter in Thunder Bay or Sudbury (where they already have operations)?

Xstrata is one of the worlds largest producers of Ferrochrome. They obviously know about the problems they face in South Africa. Does it make sense that they would pass on this opportunity in Canada...especially when they already operate here?

Xstrata is on a mission to become the largest miner on the planet. At the moment the RoF is small potatoes compared to their other oportunities. But at these prices there is a lot of $$$ to be made by buying FWR. Can they really ignore the RoF?

Mac is likely insulted by this offer. On the other hand he knows that this is just a stink bid and others will follow. IMHO he should be smaking his lips.

SN