My sense is that CLF is far more concerned about the potential of a combo than about paying another dime a share for both companies. But CLF might have avoided this by making their best offer first. Given their special relationship with KWG, they will be hard pressed to squeeze KWG out , without some very nasty litigation. But they may rather face that than a combo that could attract another bidder. Once it got really nasty, (initially with KWG tying up SPQ and then or simultaneously CLF), the parties would settle, which means a somewhat higher price for SPQ mirrored to KWG. CLF is playing a tough game right now, but that approach can seriously backfire if a second bidder gets involved. Common sense tells me CLF will never walk away without 100%, regardless of the bluster.

When the Aussies finally get the RSPT fixed, I expect CLF to regain 5 to 8%. That could make it easy for CLF to get some smiles. If they revised now to a share offer, their life could be a lot easier as the shares rise during the pillow fight. They seem a little frantic about the combo, and perhaps that is blurring their vision.