BHP - RIO merger

[bowseruni]

what will happen IF it doesn't go through?
The way i see it, bhp shares will rise as that proposed money for the merger could be used for new ventures. Rio shares will drop as i'm guessing people bought into it after the announcement hoping for a good/better offer.
does that sound right or am i way off track?

 

[Garpal Gumnut]

what will happen IF it doesn't go through?
The way i see it, bhp shares will rise as that proposed money for the merger could be used for new ventures. Rio shares will drop as i'm guessing people bought into it after the announcement hoping for a good/better offer.
does that sound right or am i way off track?

Not a bad assessment. However if it goes through both as the merged entity will go through the roof.

gg

 

[Nicks]

I think people often cheer for BHP forgetting that RIO itself has just posted a massive profit and has exceptionally quality assets. I bought into both in the last week at lows. I think they are both great companies on their own but merged they would be a powerful investment.

Interestingly RIO is trading at a discount to BHP atm. So considering they are both excellent companies regardless of a merger, it is probably beter buying given the merger proposal in my view is likely to go ahead. Why do I say this? well I am not as smart or as involved in the situation as the smart folks at BHP. They would not have put so much money and time into chasing this if the were not confident of achieving. Plus it would also leave shareholders asking why all this time and money was tied up. The thing is that something of this size and international complexity is always going to take time. The patient ones are often those that are rewarded.