I give the NOT gang credit for thinking this through. Looks like a chess game...they are thinking several moves ahead.

As Rudy (Readyset) says you don't start out with your best offer.

NOT likely has little or no interest in the other assets such as CS and Quest. But they have included them knowing that they can use them as bargaining chips.

There is some wisdom in their idea that combining the chrome reserves makes the whole greater than the sum of the parts.

NOT likely has schetched out a response offer from FWR and likely have their response in draft form.

Irwin and Rosseau are the ones forcing this offer. They do not want to wait 5 years to turn over their investment. They are hoping to flush out the big boys and get their attention. It is like hunting. Send out a dogger to get the moose moving and they will be easier to spot.

Some investors think that NOT has a major backing this offer. They may but I doubt it. The majors have had no reason make a move yet because, until now, there was no urgency. The majors all learned a lesson from Voisey's Bay and the Big Score. Never be the first to show your hand.

NOT knows that, so far, Cliffs has out foxed them and that they are not in the drivers seat. NOT is afraid of Cliffs next move. So the best defence is a good offence.

This is a well thought out move. Not only do they get some attention focused on the RoF but they force Cliffs to decide what to do next.

I agree with K that NOT could end up closing a deal with FWR for the RoF assets only while Cliffs continues to sit and watch/wait.

The current offer is their first and is a low ball offer...in spite of all the evaluations/opinions on this board.

NOT already knnows what lies accross the boarder from AT12. They know that there is more than just chrome on the FWR property. That's why they want to get it now before Don and Mac drill it up. (They also know what lies accros the boarder with UC...but that is another story).

So with what NOT knows about FWR, they know that it is worth more than 4-1. They have a price in mind that they are willing to pay for FWR...and it isn't 4-1.

I suspect they also know that Cliffs does not want to get into a bidding war for FWR and drive the price up the way it happened at Voisey's Bay. Cliffs can afford to wait and make a wiser move later.

They also know that it is still too early for Xstrata to jump into the fray. The price is still in the millions and is still very affordable for a major. Besides there are still too many unknowns for a major at this point.

So NOT is thinking that this deal, in a modified/enriched form, will go through. They are likely right.

NOT would not have made this bold offer if they didn't already know that they have some good news coming. It could be step outs at E1 and/or PGE's. We will know before 4pm Thursday according to JJ (and thanks to Frank).

So we can expect the sp of NOT and FWR to be somewhat higher by the weekend. This is one of the ways that NOT has up their sleeve for winning over FWR shareholders.

Thanks K for pointing out how difficult it will be for NOT to entice 66% of shareholders to vote in favour of the offer. It looks like it will take a lot of promotion.

Just my humble opinion. Thanks to all that keep it interesting. We will all have a bigger bank account soon.

SN