Australian (ASX) Stock Market Forum

BHP - BHP Group

Jump to new
BHP briefing
Updated: 08:31, Wednesday February 6, 2008
BHP will address the investment community in Sydney today to discuss its half year profit results and takeover bid for mining rival, Rio Tinto.

BHP advisers have been locked in meetings to discuss the takeover deal, which is likely to see the company launch a 3-for-1 bid for Rio, or just slightly above this.

There's also the possibility BHP may walk away from the deal, especially after the China-based Chinalco joined forces with America's Alcoa to purchase a 12 per cent strategic stake in Rio.

BHP is being pushed into making a decision by the UK Takeover Panel, which has told the company it must make a formal bid for Rio by today, or walk away.

The Herald is reporting that if BHP does gain control of Rio, it plans to offload the company's Alcan business.

BHP is hoping that this will quell market fears the Chinese government is using its stake in Chinalco to block the Rio takeover.

This all comes as as BHP is expected to announce half-year profits of almost $7 billion.
 
3.4 for 1.

Probably still not enough.

RIO will call it insufficient again, even though it's an above average premium to where they were before the original approach.

Will probably mean the market will expect a counter bid, or BHP will have to raise it's price. Good for RIO holders right now.
 
I reckon the Rio board will atleast meet with the BHP board with the raised offer.

3.4/$147 billion is ridiculously huge!
 
Mellow77 said:
OK already found it.

-> pre 10:50, resumes 11:00
__

Any thoughts on the share price? Up or Down or DownDown?
Click to expand...

Indicative shareprice is 39.1, so - already in the negative territory ... probably not going to be a good day for BHP.
 
zhang66777 said:
would you mind to tell me where you can find trading hold info, and resume info, many thanks:confused::confused::confused::confused::confused:
Click to expand...

It is stated in CommSec Pro. Only one line info, no pdf document. The merger and the results, too much info for today. I wonder how the market will react. Good trading to all.
 
Official Bid

http://business.smh.com.au/bhp-makes-bid-for-rio/20080206-1qgl.html

BHP Billiton, the world's biggest mining company, has made a formal $US147.4 billion ($164.5 billion) bid for Rio Tinto, raising its initial offer by more than 10 per cent.

The Melbourne-based mining company offered 3.4 of its own shares for each Rio share, a 45 per cent premium on Rio's price.
Click to expand...

if its rejected, it still buys BHP time right? as in they can continue negotiating, not step away for 6months?
 
Notably absent is any comment on BHP's lacklustre results. Net profit down for the half year. EPS up slightly only because of share buybacks. Growth only to be achieved through overpriced acquisitions. No compelling reason to own this stock at current prices.
 
dhukka said:
Notably absent is any comment on BHP's lacklustre results. Net profit down for the half year. EPS up slightly only because of share buybacks. Growth only to be achieved through overpriced acquisitions. No compelling reason to own this stock at current prices.
Click to expand...

yes....for the amount of money you have to invest with BHP to get a decent return I think there are better places to go.....SP has taken a tumble today...sold mine at $40...so glad I did....
 
dhukka said:
Notably absent is any comment on BHP's lacklustre results. Net profit down for the half year. EPS up slightly only because of share buybacks. Growth only to be achieved through overpriced acquisitions. No compelling reason to own this stock at current prices.
Click to expand...
Lacklustre?

You can't be serious...... just because it wasn't a gain doesn't mean it was "lacklustre" - it still steamrolls what most countries in this world can make in half of a year.

You also have to remember that currency is hurting BHP but atleast as a shareholder it relieving to know the company is churning out ridiculous amounts of cash.

BHP is one of the most undervalued companies listed and I'd still buy more when the market settles, afterall Rio Tinto reported a 6% decline in its last report and the shares have still shot up on future outlook by $60.

If anything I was surprised they kept it up at the same level as they have and I was more surprised with the dividend boost.
 
hey guys,

anyone know why bhp's share price went down this morning, was it b/c of their half-year earnings or was it b/c of the rio deal? i would have thought it would have gone up b/c of the 3.4 for 1 bid

any insight is appreciated.
 
Should also see increases in Coal and Iron ore prices

2245251769_e4a9323e35_o.jpg
 
vishalt said:
Lacklustre?

You can't be serious...... just because it wasn't a gain doesn't mean it was "lacklustre" - it still steamrolls what most countries in this world can make in half of a year.

You also have to remember that currency is hurting BHP but atleast as a shareholder it relieving to know the company is churning out ridiculous amounts of cash.

BHP is one of the most undervalued companies listed and I'd still buy more when the market settles, afterall Rio Tinto reported a 6% decline in its last report and the shares have still shot up on future outlook by $60.

If anything I was surprised they kept it up at the same level as they have and I was more surprised with the dividend boost.
Click to expand...

It was lacklustre. A company's share price is based mostly on future & potential growth, not current earnings. This is especially the case with a low-yielding (piss poor dividend) stock such as BHP; the entire price is based on an increase of earnings / positive return on the current price, & nothing else.

BHP is priced at 13 times it's earnings, it is not undervalued, not a single stock in this uncertain market is.

If base metal prices show no growth this year, or worse yet a decline - in line with an increase in most production costs ... what was a bargain today, will be a curse tomorrow.


Edit; Is it just me, or has BHP become the titanic of the ASX? The company that can't possibly sink :p: All the hopes of the average investor weigh on her shoulders ... the media darling, hype is never a good thing!
 
vishalt said:
Lacklustre?

You can't be serious...... just because it wasn't a gain doesn't mean it was "lacklustre" - it still steamrolls what most countries in this world can make in half of a year.
Click to expand...

Surely you cant be serious with this statement. Net Profit down, eps up 2.8% because of buybacks, lacklustre is being generous. Undervalued on what basis?
 
prana said:
NPAT about 6.017B vs estimated 7 :( unless there's something in the pooding I missed this is not good
Click to expand...

ha ha, yeh, this takeover speculation has really trumped the actual profit results! Not good at all!

I think BHP is going to see some more downside in the coming weeks!
 
Nyden said:
BHP is priced at 13 times it's earnings, it is not undervalued, not a single stock in this uncertain market is.
Click to expand...

Could be very wise words there Nyden. Things could certainly get alot cheaper the way things are panning out.

dhukka said:
Surely you cant be serious with this statement. Net Profit down, eps up 2.8% because of buybacks, lacklustre is being generous. Undervalued on what basis?
Click to expand...

Agree with Dhukka here, pretty poor results really. Net profit down isn't really a good sign.

If a company like BHPs net profit is already coming under pressure even with China booming, where is the upside going to come from? Maybe China is already priced in?
It will be interesting to see if China begins to slow after the Olympics (even if it only drops back to 3-6% growth) and if it does, what effect it will have on BHP and other resource stocks.

I think people were expecting a strong reporting season to help pull us out of the current downtrend and choppy market conditions, but with WOW and now BHP releasing weak (below market expectations) results the signs aren't good imo.

Reality setting in?
 
Hi,

Can some one tell me what will the dividend for BHP ?
Was today the ex-dividend date?

Sorry I can't find this information anywhere. Can someone point me to right direction.

Thanks
 
Top