Sorry - should have explained, I was stripping bike down completely and got carried away. Should have stopped and dealt one thing at a time.
Expander came out after soaking all night.
Ok so let's get this straight.
The bolt is out, and the wedge shaped metal piece (the expander) is also out? And the stem is still stuck?
Sounds seized to me.
Search for the million threads of "stem seized/stuck" or "seatpost seized/stuck."