No news as yet from ACL

[DEP]

see SENS out now!

[DEP]

Open auction, looks like ACL will open below R95

[asylum]

let the games begin

[DEP]

R12-b wiped off the market Cap!

[john_1]

Some oke's are busy packing their office at ACl as we speak.. shame..I bet old man Mittal is greasing palms in Gov and buying shares like crazy...expect a minorities take out! Thats my bet.

[#6]

from a trading strategy perspective - if it is reversed, then you could see a pull back of Kumba's 7% gain - but that will happen so fast you will really have to be quick to catch it. ACL on the other hand, will have a real chance of closing its gap - and that will be much easier to catch, IMO

[john_1]

I would expect a steady decline in ACL until outcome decided.. most of toadys trading has been Futures related I would guess. Just based on the fact that other bank only margin call in the morning there may be more selling to come..but that is just an oppinion

[SimonPB]

not so sure today was futues driven .. we'll know for sure tomorrow when safex updates open interest ..

[john_1]

sure not only, but I am sure lots of shorts are taking profits and longs are trying like hell to get out..

[SimonPB]

open interest is only at 10,057 contracts ..

[john_1]

that still a lot of longs.. but still That just means a litle less chance of a gap close... less gearing means less panic, greed fear etc.. although that said.. 23% would scare me to death.

[SimonPB]

no, total positions, so long and short ..

[#13]

If I was Kumba's CEO I would have made sure I had an alternative buyer, at a price I could use as leverage. And if I was CEO of ACL, and had a good deal wich I knew could go wrong, I would run with it, but have an alternative supplier up my sleave which I could use as leverage. There are advantages to both companies to come to an agreement. On balance I am leening towards shorting Kumba. Even given what appears at this stage to be outrageous management at ACL. I cannot believe that it lacks some degree of foresite.

[barry_1]

If i was KIO's CEO i'de be afraid,very afraid. After all Mittal is part of one of the worlds largest steel works.I don't think that for one moment the mother company won't come to the rescue of ts off spring.Bullying tatics of KIO wont work in the long run and Mittal have plenty of iron ore suppliers that they can mobilise to take Kumbas place.Probably not at the present price which is too low,but not at the price Kumba now wants.It is in boths interest to negotiate a settlement ASAP.

[Picky]

it is not bullying tactics, Acl wants their cake and eat it, Acl has been raping the SA steel users behind the international price screen, well now Kio is doing exactly that.

[SimonPB]

why dissing KIO, ACL messed up big time, all they had to do was submit a form in triplicate to gov and none of this would have happened ??

[john_1]

This deals was put in place in the times of Iscor.. its antiquated and anti competitve and has only ever been to ACl's advantage, they have never passed on the discounted steel input cost to the consumer infact the opp is true.. you can buy steel ofshore at a significant discout to SA, if you remove the shipping and finace charges...GO KIO GO...

[SimonPB]

@ of short dated SSF contracts increased slightly to 10,650 .. an of course we have no view of CFD or option positions ..

[Jim_Bean]

KIO and ACL will fight this out ... the lawyers will make money and the end users will have to pay the price.

[barry_1]

I agree with that,i am no friend of Mittal and believe that the price payed for the iron ore was much too low.KIO on the other hand is using this BEE thing to their own advantage to obtain a higher price....How ever a contract is a contract,look what happened to Sallies when they broke contract. At least KIO has thought better of it and is still supplying to ACL till this thing is worked out.KIO cannot expect to receive the same price for its product than the overseas landed price here as the transport route is much shorter.