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BHP drops bid for RIO

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grace said:
I thought it was Kloppers ego being fulfilled going for RIO.

Now I'm happy.
Click to expand...

OK
What do you say about the strong recommendation by Charlie Aitken (the great proponent of FMG), Alan Kohler, Robert Gott who all advocated why BHP and RIO merger should be good for economy ?

What were their motivation - just becoming lap dog of Kloppers :confused:
 
Looks like the Chinese who bought the blocking stake of 9% in RIO will be able to pick up a big slice of it for SWA and have a long cheap supply of iron ore for decades which may not help others.
 
Miner said:
OK
What do you say about the strong recommendation by Charlie Aitken (the great proponent of FMG), Alan Kohler, Robert Gott who all advocated why BHP and RIO merger should be good for economy ?

What were their motivation - just becoming lap dog of Kloppers :confused:
Click to expand...

Actually, I recall Alan Kohler (held BHP shares at the time) commenting that he did not like the takeover when it was first announced as he did not own RIO shares, and was initially quite negative about it. He commented that the price was too high.
 
Im very new to the share market which will be evident in my posts pretty quick:rolleyes:

But im confused as to why its considered a good thing for a company to be taken over by another. To me, the 3.4 for 1 offer by BHP doesnt seem worth it for Rio share holders. If Rio shares were worth roughly 3 times or more than BHP, then whats the point?

Also as soon as they took over Rio, BHP's share price would immediately drop while the merger flitered through which would take years to sort out.

I mainly stayed away from Rio because they have more debt than what i feel comfortable with atm. But the other reason was that i thought there is better value elsewhere because of the above things ive mentioned. I also steered clear of BHP until about 2 weeks when i gave in and bought some. Now im glad the merger didnt happen because for now i think BHP are far better off without them.
 
It would be so much easier now for BHP to throw in a cash bid for RIO again (unlikely) or some other assets which are literally at bargain basement prices.
RIO is so stuffed today, but BHP weighs so much more in the index that it'll probably offset the RIO fall and then some.
 
grace said:
Actually, I recall Alan Kohler (held BHP shares at the time) commenting that he did not like the takeover when it was first announced as he did not own RIO shares, and was initially quite negative about it. He commented that the price was too high.
Click to expand...

Grace

Thanks . I will double check my record and hope you are right here. That will bring my faith back on Alan Kohler.
 
Neither BHP nor RIO seem to be trading - can't find any information about a trading halt. Does anyone know what's happening?
 
Ummm is my broker lying to me or did Rio just drop by 35% in about 5 minutes? Thats gotta be some kind of record.
 

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