I read this comment about KWG asking for an extension, last week. At the time, it didn't sink in, but I was lying in bed last night and suddenly something clicked. If, as we have assumed, there is a bit of tension between KWG and Cliffs (thanks to the events of last spring/summer), then why would they bother asking for this? There is no reasonable expectation that Cliffs would grant this request, on the surface.

Therefore, one must assume one of the following:

1. This was reported incorrectly; or

2. This was reported correctly. KWG was asking for an extension.

If the latter, then we have to assume that there is some logic behind the request, and that KWG isn't taking this step when expecting it to be a waste of time. If THAT is the case, then one must assume one of the following:

1. KWG and Cliffs are actually getting along much better than some had assumed, and Frank feels that Cliffs would reasonably consider the request; or

2. KWG has some sort of information or bargaining position or other strength that we don't know about, which would make Cliffs want or need or be forced to consider acquiescing to the request.

Number one is possible. After all, Cliffs has held their 19.9% position for some time with no apparent change. We can assume that Cliffs would benefit by having a Canadian corporate presence within the ring, on a number of fronts. Maybe the two companies are now cooperating to the point where KWG has become a friendly entity to Cliffs. There are any number of reasons why this situation might be true but not have been publicly acknowledged by either company. In fact, if true, this could have been the case since last summer, and maybe the adversarial relationship on the surface has been a red herring for some time now.

If number two, what could be the hidden position of strength? Support from Xstrata? Political pressure? Infrastructure as a bargaining chip? Or any number of other things.

I would only put the odds of the first option being correct at less than 25%, but I suppose the possibility exists. But this whole situation has me curious now that I've started thinking about it. Trace, do you have any more detailed info that you can share about this?