On Monday, Atlas agreed to a one-for-571 scrip takeover bid from MinRes after several months of talks.
Ellison said the Atlas business was in "palliative care".
"The business has a finite life - management are hamstrung, they have zero capital to be able to grow," he said on an investor call yesterday.
Despite Ellison's belief that the heavy discounts for lower grade iron ore would start to narrow over the next 12 months, he said Atlas was losing money on a month-to-month basis.
"If they haven't made money in the past three months, they're probably not going to make any in the next nine months," he said.
Ellison said retail shareholders had been "whining and bitching" that they'd paid more for their shares than the offer price of around A3c, bu...