# RIO and BHP



## YOUNG_TRADER (9 May 2007)

What just happened??????????????????????

They're going nuts!!!!!!!!!!!!


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## caleb2003 (9 May 2007)

I wanted to know the same thing, luckily after being stopped out this morning I put an order in when it went on the rise again at about 90 but $96  

I can't find any news anywhere


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## Sean K (9 May 2007)

RIO look like it'll break 100 today!  LOL.

Maybe there's more to the rumours than meets the eye. 

I read that a sum of parts for RIO was about 140, so a bit to go perhaps.


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## Sean K (9 May 2007)

kennas said:


> RIO look like it'll break 100 today!  LOL.



Golly, maybe it will. Up $7.00, hitting $97.  Crazy stuff. Maybe.


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## Uncle Festivus (9 May 2007)

kennas said:


> Golly, maybe it will. Up $7.00, hitting $97.  Crazy stuff. Maybe.





We're very exuberant, but when will we be irrational?


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## Ken (9 May 2007)

massive run up in resources.....

be carful.  profit taking... all the big resources are kicking goals now.

oxr is also chugging along for the ride.

does this smell of last may before we had correction>?


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## alankew (9 May 2007)

Could it be the rumoured takeover for BHP.ZFX also up 60c after being down 20c at one stage.Crazy


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## falconx (9 May 2007)

J MARKET TALK: Rio Tinto Surges On BHP Takeover Rumor

0242 GMT [Dow Jones] Rio Tinto (RIO.AU) surges to record high of A$96.48, now up 5.4%
at A$94.52, on rumored bid by BHP (BHP.AU). Rio Tinto declines to comment; BHP declines
to comment. BHP up 1% at A$31.50, hits A$31.90. There's talk in the market of broker
research canvassing a A$110/share bid by BHP. "Obviously, the market all of a sudden
thinks there's some substance to it," says senior institutional trader. Other
traders say some clients claim BHP has approched Rio. (DWR)

Maybe a big announcement pending.. Hopefully sees BHP break through $32, I hold.


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## alankew (9 May 2007)

Falcon if this is true it will have a massive impact on resource stocks and also the ASX as a whole.Just goes to show you that you are never too big for something like this to happen(if its true that is)


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## Rafa (9 May 2007)

is anyone buying into this at present?

also, whats the better buy, bhp or rio?


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## Sean K (9 May 2007)

Rafa said:


> is anyone buying into this at present?



No, I own BHP already and am too concerned this is just rumour and when denied will result in sell off. I'm just a scaredycat really.


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## Sean K (9 May 2007)

Rafa said:


> also, whats the better buy, bhp or rio?



Analysts reports I have read say more upside in RIO. Anyone got anything different?


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## UPKA (9 May 2007)

I would hold for now, its js a buying rush from rumours, nothing is solid, if both company denies teh claims, we'll see a big drop pushing the price down to its normal price.


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## Rafa (9 May 2007)

and then ofcourse in a coule of weeks time the read bid will eventuate...
and we'll all have missed the boat!

i was trying to do the same thing with qantas and bombed out big time!

arrrgh... decisions, decisions...


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## UPKA (9 May 2007)

i highly doubt this take over will be anything bt a rumour, dont forget that this has to go thru ACCC first, and ACCC usually wont allow take overs or mergers like this.


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## Kauri (9 May 2007)

If someone is going to go for Rio they will need to get moving, earlier today a bid when Rio was $90 with a 30% T/O premium would have the bid launched at $120 odd, soon a 30% premium on $100 will be $130ish...


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## Rafa (9 May 2007)

the flow on effect on other stocks like zfx, oxr, even osh is amazing...

its smashed any hope of May being a down month for stocks!


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## Sean K (9 May 2007)

UPKA said:


> i highly doubt this take over will be anything bt a rumour, dont forget that this has to go thru ACCC first, and ACCC usually wont allow take overs or mergers like this.



Not sure on this one. They're both international companies, duel listed. Actually, not sure of the rules on this one, but I think I read somewhere that they would avoid ACCC scorn due to being 'international'. ??


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## UPKA (9 May 2007)

kennas said:


> Not sure on this one. They're both international companies, duel listed. Actually, not sure of the rules on this one, but I think I read somewhere that they would avoid ACCC scorn due to being 'international'. ??




if thats the case, nevermind my comment then


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## falconx (9 May 2007)

WOW!! This is getting beyond speculation now. BHP @ $32.25 RIO $99.50 . The way they're going XJO might be 6500 by the end of the day.


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## Rafa (9 May 2007)

yeah i don't think the ACCC will come into this...
ACCC only protects australian consumers.


the only test this will have to pass is the FIRB...
as BHP is considered Australian, it buying RIO will not be a problem what so ever!

this is unlike xstrata bids, its buys had to pass scrutiny under FIRB and national interest grounds.


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## Sean K (9 May 2007)

I actually think something's going on here. Maybe they're building stakes in each other at the moment?


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## UPKA (9 May 2007)

Looks like a sharp drop in RIO now, wat i think is that BHP is opening up their wallet, and is looking to buy something in the market, can be anyone really, except everyone think its RIO.


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## Rafa (9 May 2007)

your right, something is up!
alas, i don't know what it is!

i hate things like this...
much prefer orderly, technical or fundametal based movements.


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## falconx (9 May 2007)

Seems RIO took a bit of a breather after hitting $99.50, maybe MBL pulled a few strings so it doesn't beat it to $100 lol  .. 
BHP at all time highs btw hope it can hold it for another two hours.


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## Kauri (9 May 2007)

Interesting volume for the day so far.... Rio and BHP charts are attached...


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## Sean K (9 May 2007)

Kauri said:


> Interesting volume for the day so far.... Rio and BHP charts are attached...



Volume seems to be more unusual on RIO longer term too.


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## UPKA (9 May 2007)

Looks like a day trader's heaven atm for RIO, there r more waves on RIO's sp than bondi!


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## Rafa (9 May 2007)

more like a nightmare...
that SP is moving in dollars every couple of minutes


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## Ken (9 May 2007)

Margin loans on these to at 70 and 24.

Very rewarding for some!

30% gains, on what you would say is a long term hold.


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## Gundini (9 May 2007)

I have witnessed a rare event with these two stocks... 

Sooo volatile... I am scared to trade....


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## telstrareg (9 May 2007)

What a ride RIO was today! Climbed 13% from the open at it's peak. The major rise of the day was 6% in 5 minutes!

I'm guessing quite a few got burned trying to short sell after the 2pm peak thinking the market was done after 2pm peak failed to break the day's high.


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## Ferret (9 May 2007)

Here's another idea.

BHP spins off its petroleum division to help fund a takeover of RIO and then concentrate on mining.  WPL teams with private equity to be the buyer.

Synergies all round!

Ferret


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## falconx (10 May 2007)

IMO BHP is considered undervalued by many and needs a lot of debt to avoid being taken out themselves.


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## Sean K (6 September 2007)

DJ BHP Billiton Not Commenting On Rio Tinto Takeover Speculation
06/09/2007 11:04AM AEST  


MELBOURNE (Dow Jones)--BHP Billiton Ltd. (BHP.AU) Thursday declined to comment on market rumors that it may team up with Brazil's Cia. Vale do Rio Doce, or CVRD (RIO), to launch a takeover for mining rival Rio Tinto Ltd. (RTP). 

"We don't comment on market rumors and speculation," a BHP spokeswoman said. 

Traders have said a rumor is circulating that BHP and CVRD are planning a takeover of Rio to be followed by a break-up of the acquired company. 

CVRD also declined to comment Wednesday on the market speculation. 

Rio Tinto shares appear to be getting a boost from the rumor, however, and are trading up 1.7% at 0059 GMT in an Australian market that is down 0.9%.


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## Ken (7 September 2007)

BHP and RIO definitely the sole drivers of the All Ords at the moment.

Take away the resources stellar run, and the markets would be looking very unhealthy for OZ.

A fall in base metals, oil and gas prices, would send the All Ords below 6000 again.

Resources definitely been the pick of the bunch.


Australia's biggest miner has returned 40% in less than 10 months.


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## YOUNG_TRADER (8 November 2007)

YOUNG_TRADER said:


> What just happened??????????????????????
> 
> They're going nuts!!!!!!!!!!!!




Well it looks like BHP has made a move on RIO boys and girls, get set for some fireworks

*BHP offered 3 BHP share for every 1 RIO share*


http://c.moreover.com/click/here.pl?x1168415415&f=1774

http://c.moreover.com/click/here.pl?x1168418373&f=1774


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## dutchie (8 November 2007)

G'day Young Trader

Other way round was it not.

3 BHP shares for each RIO share

Cheers

Dutchie


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## YOUNG_TRADER (8 November 2007)

dutchie said:


> G'day Young Trader
> 
> Other way round was it not.
> 
> ...






Thanks mate, totally had a duhhh moment there, edited post 

Cheers


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## mlevit (8 November 2007)

Is a second offer from BHP likely or not?

I'm thinking if there's a jump in RIO's shares tomorrow anywhere near what's happening in London now, I'll be selling out.


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## M34N (9 November 2007)

mlevit said:


> Is a second offer from BHP likely or not?
> 
> I'm thinking if there's a jump in RIO's shares tomorrow anywhere near what's happening in London now, I'll be selling out.



I would probably hold for a while at the least, of if you're not that confident, maybe sell some of them off.

Look at what happened with Coles when their takeover was announced, they went up, they did fall after the Texas group pulled out, but their price rallied again even higher after Wesfarmers came in.

And same with Qantas, they knocked back a takeover and now are trading above their offer price, I think that was around $5.50? Now about $5.80.


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## mlevit (9 November 2007)

The problem I'm facing is not knowing if a) There will be a second offer and b) The share price will reach the same heights it is expected to reach tomorrow.

Plus, how likely is this acquisition really? With all the competition/monopoly laws our there and all the approvals BHP has to obtain will this acquisition go beyond just a bid?


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## shinobi346 (9 November 2007)

this might explain BHPs silence when rio went after alcoa. two birds with one stone perhaps?


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## Poker (9 November 2007)

BHP pursuing RIO (potentially the largest acquisition in history) in current market conditions (where there is a fear of U.S recession, slowing of global economy - *granted the proposal is all share*), I think, is a great reassurance of the strength of the Australian economy and longevity of the mining boom.

Let the good times keep rolling


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## Caliente (9 November 2007)

Kloppers will be remembered as a genius or a fool. But good on him for being a bold visionary.

Either way he's going to make history ^_^


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## bvbfan (9 November 2007)

If it goes through it will be the largest acquistion ever by almost two times I think


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## Garpal Gumnut (25 November 2007)

I'm not sure whether this is old news or not, RIO's imminent reply to BHP's takeover strategy.

http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article2935637.ece

From the Times.

gg


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## vishalt (25 November 2007)

That would definitely scathe and embarrass BHP. 

Kloppers will probably crack a bolt and just go hostile in the week maybe.


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## vvguru (26 November 2007)

A Chinese newspaper just disclosed a Chinese government's plan for a consortium of steelmakers and China Investment Corp to put up a bid for RIO at US$200bil offer, i think now the party gatecrasher coming in. tough road ahead for BHP plan.

here is the link, but its in Chinese.

http://finance.sina.com.cn/chanjing/b/20071124/21294212755.shtml


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## barnz2k (26 November 2007)

reading the google translated version now.

RIO is up 6% already today.

Would RIO sell to china if the price was right?? if it becomes a legitimate 200Bil offer then what is BHP going to have to counter with?


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## shinobi346 (26 November 2007)

vvguru said:


> A Chinese newspaper just disclosed a Chinese government's plan for a consortium of steelmakers and China Investment Corp to put up a bid for RIO at US$200bil offer, i think now the party gatecrasher coming in. tough road ahead for BHP plan.
> 
> here is the link, but its in Chinese.
> 
> http://finance.sina.com.cn/chanjing/b/20071124/21294212755.shtml





The Chinese fund in question is denying it.
http://au.us.biz.yahoo.com/rb/071126/riotinto_bhpbilliton_china.html?.v=3

I also think if the chinese steelmakers are going to big for RIO it should void their objection to BHP buying it.


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## Sean K (16 August 2008)

When the bid gets blocked by Europe, who will BHP and/or RIO go after I wonder?

Or, no more M&A...


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## Miner (18 August 2008)

The result of BHP financial is out when the market went to sleep in Australia.
Good result with high dividend and return on investment increase.

However probably the market expected much more and we will see tonight at NYSE and tomorrow morning in ASX.

With 85-90% iron ore price rise market profit expectation has already probably discounted in price increase in SP.

Let us see 

http://www.asx.com.au/asxpdf/200808...85FA2=0&bcsi_scan_filename=31brjp9plp2x91.pdf


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