The courts are always an option, but MAC has announced their intention to sell, has reviewed three offers, and countered. Two of the groups are still there and working out a response, and a new one has asked for information. I believe things are proceeding according to normal business practice.
It is possible all could walk away, or there could be an agreement in principal tomorrow.
The Mongolian government could not consider an act of expropriation. Mongolia is a member of the international community, and relies on the support of the IMF, World Bank, Asia Development Bank, and others. MGR is an international company with Canadian, British, American, Australian, and Mongolian shareholders. All would be very upset at such an act of expropriation, of their property or anyone else's for that matter. These shareholders would undoubtedly inform their respective state or foreign affairs departments of their displeasure. It doesn't take much more than a fax, but the response of each of these governments would be clear. The rules of international law, or let's discuss the next aid package.
The Mongolian government is young, inexperienced, ambitious, and responsive. It is many things, but it is not ignorant nor suicidal.
Dave |
