LauraB, thanks for posting this.

$6B is a fair bit for a writedown. So we should expect to see a drop of share price below $9/s?

Here are some speculations from a non-accountant:

Let's suppose that CLF went through with the writedown to bring the value of its assets closer to the current MktCap, then what would happen if CLF managed to sell some asset, say Bloom Lake for about 1/2 the price of ~$5B it paid for, i.e. = $2.5B? All this cash (assuming it's a cash transaction) would go to the bottom line for the MktCap?

- What would happen to the sp?

- Would this trigger a hostile TO by some major who wants to partner with KWG to develop the RoF? Ah, might as well buy the entire CLF assets, everything, rather than just the chromite assets, for say $2B, a 42% premium; or even $2.5B (present value of Bloom Lake?), for a 78% premium.

Come to think about this, perhaps, the time to do a TO is now rather than wait for CLF to divest Bloom Lake, or other international assets.

Comments, anyone?

goldhunter