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BHP - BHP Group

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kennas said:
Opening up under $22....cripes!

I thought under $25 was a buy.

I've underestimated the power of this drive down.

:eek:
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Gone down at $21.12 (RIO $56). What the chart saying now Kennas.

I remember in your recent posts you (?) did say with the help of a chart that if BHP does not hold at $24 it will slide.

I hate to see you are correct again in such predictions but market is supporting you !!:banghead:
 
Miner said:
Gone down at $21.12 (RIO $56). What the chart saying now Kennas.

I remember in your recent posts you (?) did say with the help of a chart that if BHP does not hold at $24 it will slide.

I hate to see you are correct again in such predictions but market is supporting you !!:banghead:
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I'm not sure if these lines matter anymore, it's just panic out there.

I thought if 24 broke, then 20ish was a chance, but I'm not trusting anything in this downward lurch.

:confused: :confused:
 

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considering the current environment for resources stocks and if the rio bid goes through (which seemed like a great idea at the time), bhp will have 50bn in debt.

is this scary in this current environment?

do u think it could drop below $20 in 2009 due to this?

will bhp be able to adequately handle this kind of debt?

thoughts....?
 
hotbmw said:
considering the current environment for resources stocks and if the rio bid goes through (which seemed like a great idea at the time), bhp will have 50bn in debt.

is this scary in this current environment?

do u think it could drop below $20 in 2009 due to this?

will bhp be able to adequately handle this kind of debt?

thoughts....?
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Will BHP walk away at the very last moment or revise the bid terms? They must be waying up the options knowing markets are going for a last minute withdrawal.
 
do u think they r in too deep to walk away now?

how would it look if they pulled out now?

if they go ahead could it drive the share price down due to the high debt/risk?

if they pull out, could it disappoint investors.......? so many questions.......
 
Its a scrip bid so I don't think the current state of the markets has so much to bear on it.

Actually, I don't think it is going to get past the EU regulators. And I think both BHP and RIO will drop when this is announced.
 
seems like a loss situation in any given scenario....

does anyone know the date the eu regulators will announce their decision?
 
hotbmw said:
seems like a loss situation in any given scenario....

does anyone know the date the eu regulators will announce their decision?
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It was supposed to be Feb next year, but I think BHP has yet to submit some papers to EU, so it might be extended till March. My hunch is Ides of March...
 
Ferret said:
Its a scrip bid so I don't think the current state of the markets has so much to bear on it.

Actually, I don't think it is going to get past the EU regulators. And I think both BHP and RIO will drop when this is announced.
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I was thinking BHP might rise if the RIO takeover doesn't go ahead.

They should be able to resume their buybacks and wouldn't have as much debt as if they went ahead with the takeover.

That is just my opinion but I think it is a good possibility.

DYOR
 
mayk said:
It was supposed to be Feb next year, but I think BHP has yet to submit some papers to EU, so it might be extended till March. My hunch is Ides of March...
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BHP may face delay in EU ruling on Rio bid: paper
Thu Nov 20, 2008 3:36am EST

http://www.reuters.com/article/innovationNews/idUSTRE4AJ2D920081120

SYDNEY (Reuters) - A January 15 deadline for a European Union ruling on mining giant BHP Billiton Ltd/Plc's (BHP.AX: Quote, Profile, Research, Stock Buzz) bid for rival Rio Tinto Ltd/Plc (RIO.AX: Quote, Profile, Research, Stock Buzz) could slip by up to three weeks after BHP missed a deadline to offer asset divestments, the Australian Financial Review paper reported on Thursday.

The paper, in an unsourced report, said BHP was arguing it may not be required to make any divestments though the market expects significant asset sales would be required, putting the deadline back to February 5.

BHP missed a November 17 deadline to offer early asset sales and stay on track for the mid-January decision, the paper said.

"BHP now has until December 1 for a final deadline to put forward remedies to the European Competition Commission's statement of objections, or risk the regulator opposing the merger completely," the Review reported.

Earlier this month, BHP received a document from the European regulator detailing anti-trust hurdles to its bid for Rio.

Details of the EU's objections remain confidential, though analysts have said the main issue revolves around iron ore, since Rio and BHP are the world's second and third biggest producers.

In a separate report on Thursday, the Sydney Morning Herald paper said the EU's objections include concerns a combined group would have the power to forge a new global iron ore pricing system, whether its customers like it or not.

(Reporting by James Thornhill, editing by Wayne Cole)


© Thomson Reuters 2008 All rights reserved
 
subi1 said:
I was thinking BHP might rise if the RIO takeover doesn't go ahead.

They should be able to resume their buybacks and wouldn't have as much debt as if they went ahead with the takeover.

That is just my opinion but I think it is a good possibility.

DYOR
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Spot on me thinks. There are better bombed out investments around the world, especially in Australia. RIO has still got these awkward can't sell coal mines in America and now dud looking iron ore mines.
 
BHP up 6.758% to $23.38
RIO down 0.35% to $59.80

These guys are usually on par with each other as far as highs and lows.
Today is an exception that I deem to be a significant difference.
What can be read from this or is it simply all in a days trading..

Cheers.
 
Ruincity said:
BHP up 6.758% to $23.38
RIO down 0.35% to $59.80

These guys are usually on par with each other as far as highs and lows.
Today is an exception that I deem to be a significant difference.
What can be read from this or is it simply all in a days trading..

Cheers.
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I think this may explain the price movements; BHP still on a buy rating, while RIO was downgraded to a hold.

http://www.iii.co.uk/shares/?type=news&articleid=7030631&action=article

Nov 24 (Reuters) -

# ING CUTS RIO TINTO, ANGLO AMERICAN TO HOLD FROM BUY

# ING CUTS RIO TINTO PRICE TARGET TO 2200P FROM 5875P

# ING CUTS ANGLO AMERICAN PRICE TARGET TO 1050P FROM 3525P

# ING CUTS BHP BILLITON PRICE TARGET TO 925P FROM 1950P; KEEPS BUY
rating

# ING CUTS XSTRATA PRICE TARGET TO 1100P FROM 3800P; KEEPS BUY RATING (Bangalore Equities Newsroom; +91 80 4135 5800; within U.S. +1 646 223 8780)
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Ruincity said:
BHP up 6.758% to $23.38
RIO down 0.35% to $59.80

These guys are usually on par with each other as far as highs and lows.
Today is an exception that I deem to be a significant difference.
What can be read from this or is it simply all in a days trading..

Cheers.
Click to expand...

Also Tom Elliot, Eureka Report today on Rio takeover bid:

"Rio Tinto/BHP Billiton. Rio has close to $US50 billion of debt, whereas BHP has less than $10 billion. I’ve said many times that I think ultimately BHP will win this contest, but if, for example, it just got too hard for BHP or the European regulator said it wouldn’t allow the takeover to proceed, then Rio’s in trouble. It’s not going to disappear, but it’s one of the bigger lumps of debt out there that needs to be refinanced over the next few years. So if Rio potentially has issues with its refinancing, you can imagine for smaller companies it’s just going to be very difficult."
 
I've been waiting on this trade for a while now. And was lucky enough to get in today. :cautious: Perhaps...

Looking for it to fill the gap indicated on the chart, after what looks to have been a blow off, capitulation bottom with a lot of stopping volume. Thought it was pretty ambitious, and it has a lot of work to do, but it is well and truly possible from here...

Cheers.

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