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I've possibly missed something obvious but I'd like to confirm something. I would like to attach the baron to a unit of shining spears, and then outflank them. I always thought this was a no goer, but I've been reading the rulebook:

Page 39 of the book under independent Characters/special rules states: "when an independent Character joins a unit it might have different special rules from those of the unit. Unless specified in the rule itself (as in the stubborn rule), the units' rules are not conferred...."

The stubborn rule says " When a unit that contains at least one model with this special rule takes morale....." which implies that only one model is required.

The outflank rule has similar wording: "During deployment, players can declare that any unit that contains at least one model.with this special.rule is attempting to outflank...".

To me this reads that I can therefore attach an I to the shining spears and outflank. Have I missed something obvious or am I misinterpreting this rule?

No, you are reading it fine. What you are probably doing is mixing it up with the infiltration debate which doesn't work because of the way infiltration works

That is indeed how Outflank works. Whereas Infiltrate gets mucky because it has to do with how units are joined and IC's join squads to begin with, Outflank is a way for units from reserve to enter the table. The IC and unit he's with will already be in reserves and therefore part of the same unit, meaning they can all outflank.

There are several upgrades and characters in books designed for you to do this exact thing. Off the top of my head, the Steed of Slaanesh upgrade for Chaos Lords and Sorcerers confers Outflank and Acute Senses to the rider, so you can attach them to a squad of bikers or Noise Marines to outflank the entire unit.