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Re: rwa3848 post# 19165

Tuesday, 04/22/2008 2:40:17 PM

Tuesday, April 22, 2008 2:40:17 PM

Post# of 27510
Fair Play is an important aspect of share price valuations. It is particularly important for conglomerates in the information age to be perceived as acting in the interests of third world countries. To accomplish positive PR for third world business activities, these conglomerates make room for government backed third party.

In other words, if Rio Tinto had complete control over the project, a riot would ensue and its share price would fall. Loopholes and contractors also substantially lessen balance sheet debt burdens.

Even if UMNG were only included as a shell company, it would be beneficial for Rio Tinto because it reduces balance sheet costs thereby making the project appear more and more profitable to existing and prospective shareholders.



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