Hi Ganalane!

Any other company is entitled to buy all the shares of KXL they want as an investment. However, once the holdings surpass 10% of the outstanding shares they become a reporting insider, and they must disclose their intentions or declare a hostile bid. I doubt that is going on right now but stranger things have happened.

I am sure there are some majors that have signed CAs to investigate the potential even at this early stage, and one of the benefits to that is that it removes the possibility of a hostile TOB. There is always the potential for a friendly transaction with any company that wants to make an offer, but IMO a hostile bid is going to require a high premium to the current share price since so much paper is held by friendly institutions and insiders. And despite the excellent results and the fantastic property holdings, I doubt anyone wants to pay a huge premium yet to take it out given what is on the record so far. Potential is real and there is probably going to be a big deposit (or several) proven up in the future, but no major wants to overpay for potential, and they have their own shareholders to report to.

cheers!

mike