From The Australian:
It is understood that approaches have been made by Mr Forrest to banks such as Macquarie, UBS and possibly Goldman Sachs concerning Chichester.
…Predictions by Fortescue are that they will be able to reduce costs at Solomon Hub to about $20 a tonne, whereas Chichester could only go as low as $26.
…Adding weight to the theory that only a partial sale of Chichester would likely occur is that Fortescue blends Chichester’s and Solomon’s iron ore, so both hubs need to be operating simultaneously.
Dumping Cloudbreak and Chichester on the Chinese would hand them half of the forthcoming losses, as well as liberate FMG’s debt on its remaining holdings.
I’m not sure why China would buy it. Why not wait Twiggy out until he’s desperate enough to sell the good stuff? The answer may come through game theory if the Chinese figure they can acquire FMG incrementally and dodge FIRB that way.
Even so, Bozo should block it.
