MIM Holdings Limited

The takeover of coal and base metal miner MIM is moving as quickly and erratically as a game of ping pong so it warrants an update on last week's email update. Now Robert de Crespigny, the former chief of Normandy Mining, has joined Platinum and MIM's MD Vince Gauci in calling Xstrata's price inadequate. They are rallying shareholders against the $1.72 bid and, given the deal requires 75% shareholder approval, it appears increasingly unlikely it will go through. If this is the case the shares will fall further than the current drop of 5% since issue 125/Apr 03 (Hold for the Upside - $1.69). Although MIM's board are keen sellers we see Xstrata as equally keen buyers who may well come back with a hostile bid if jilted. It's impossible to say how this will play out but we suggest subscribers HOLD FOR THE UPSIDE.