# BHP Private Equity Takeover!!



## nizar (5 May 2007)

> THE RATINGS GAME
> Merrill Lynch suggests private-equity BHP bid
> Broker doesn't say bid is likely, but argues it's possible
> By Steve Goldstein, MarketWatch
> ...




http://www.marketwatch.com/news/sto...x?guid={E8C94D75-38A9-4910-AAA0-C120AE3A9E07}

If I had the cash, I would do it. Then break it up into BHP Uranium, BHP Petroleum and BHP Metals, etc, etc.

This speculation should fire up our markets next week at least on monday


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## nizar (5 May 2007)

Come on guys, 48 views and not one reply... !!
Isnt this pretty interesting..

Lets try to put an appropriate market cap on say, BHP uranium... well from a point of view of inground value of olympic dam, well, i think that would be too many zeros! LOL

But their plans if im not mistaken is 10,000tonnes of uranium by 2013... and a mine life, maybe 100 years? There still 17rigs that have been drilling for more than 1 year, and i think some updates are being released soon...

But 10,000t thats 22million pounds, a fair multiple of PDN, and PDN is 5billion market cap... Hmmmm.... and Yillerrie potential as well.....

It would be interesting....


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## astroboydivx (5 May 2007)

It would not pass the Foreign Investment Review Board, due to it being against the national interest.

Qantas is one thing, but BHP - not a chance.


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## Knobby22 (5 May 2007)

It's not strictly an Aussie company anymore, so the takeover would be difficult to block.

I thought of BHP as a private equity takeover a while back, it is cheap at the moment. It could happen. It is a much better buy than a standard mining company as it has oil and uranium, energy stocks.


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## Sean K (5 May 2007)

nizar said:


> If I had the cash, I would do it. Then break it up into BHP Uranium, BHP Petroleum and BHP Metals, etc, etc.



I'll chip in Nizar. Who will we use as advisors? YT might be in too.


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## Uncle Festivus (5 May 2007)

I don't think any company is immune anymore, in this climate. Maybe WPL is back on the agenda too; but I'd like to have a go at Wesfarmers if I was a private equity dude.


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## wayneL (5 May 2007)

kennas said:


> I'll chip in Nizar. Who will we use as advisors? YT might be in too.



LOL

I've done a quick scout around the house and have managed to scrounge up $7.35.

I'M IN!


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## Kimosabi (5 May 2007)

wayneL said:


> LOL
> 
> I've done a quick scout around the house and have managed to scrounge up $7.35.
> 
> I'M IN!




WayneL, why on gods green earth would you use you own money I went and saw the bank and they lent $7.35...


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## Rafa (5 May 2007)

remember, you can borrow the rest anyway... its always leveraged buyouts. tho 99.99% leverage may be a bit too much


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## wayneL (5 May 2007)

Kimosabi said:


> WayneL, why on gods green earth would you use you own money I went and saw the bank and they lent $7.35...



It was the Mrs' money  

But great idea! I've got a mate who's a soft touch for $20.


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## billhill (5 May 2007)

What about China? If BHP is really a private equity target wouldn't china also be taking a look. It has probably more value to china then what the private equity guys could get out of it.


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## Julia (5 May 2007)

wayneL said:


> It was the Mrs' money
> 
> But great idea! I've got a mate who's a soft touch for $20.




Wayne,

I'll be generous enough to offer you a loan of a whole $100 (at a usurious interest rate, of course.)


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## wayneL (5 May 2007)

Julia said:


> Wayne,
> 
> I'll be generous enough to offer you a loan of a whole $100 (at a usurious interest rate, of course.)



oooooooooh! You capitalist! LOL


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## stoxclimber (6 May 2007)

I'd be suprised. It's not a typical target. That said, there's so much money that its got to go somewhere.


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## wayneL (6 May 2007)

Off-topic re BHP but on-topic re LBO's

http://www.comstockfunds.com/index....t Commentary&newsletterid=1302&menugroup=Home

The last para\/


> All of these prior "excess liquidity" situations by leveraging companies up with debt had an ugly ending, and we suspect this one will not be an exception.  Take a look at the attached charts showing "excess debt" not "excess liquidity".
> 
> * Total Credit Market Debt as a % of GDP
> * Total Credit Market Debt as a % of the Economy (GDP)
> * Private Domestic Non-Financial Debt as a % of GDP


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