Australian (ASX) Stock Market Forum

BHP takeover of RIO

What effect will this have on the Aussie Resource Sector?

  • It will be huge!

    Votes: 46 42.6%

  • It will be positive, but not huge

    Votes: 36 33.3%

  • It won't have much of an effect

    Votes: 9 8.3%

  • Undecided

    Votes: 7 6.5%

  • I love lamp

    Votes: 10 9.3%
  • Total voters
    108
  • Poll closed .
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Watch the Anchorman movie or maybe the part is on Youtube



I would have voted for Lamp too but this deal will be huge if it goes through.
 
I think RIO is being selfish rejecting this offer; don't they see that we need some action on the ASX to keep us distracted from the US markets?! :D

In all seriousness though; what exactly are RIO holding out for? An offer worth $200? Heck, they're only sitting on 130 because of the premium offered; if it all falls through...I'm quite sure it wont sit there :)

Can't claim prospects for the next 10 years as already realised, a lot of things can happen.

What do RIO holders feel though? Did you ladies/gents find it reasonable, or unacceptable? I shall check out the RIO thread :D

I would have thought a premium as large as that would be great for a stock as large as this
 
I personally can't see RIO going for less than $151.15 cash or equivelant...minimum.. Other mobs have been casting their eyes at Rio, now that Alcan is fait accompli see who else comes out of the woodwork... the Chinese... XStrata/Glencore.... Yilgarn Mining??? Even in the very unlikely chance that no-one else bids up the auction action, BHP will end up paying $151.15 absolute minimum... I think.. :) I hold.... and wait.. :eek:
Cheers
........Kauri
 
Kauri said:
Other mobs have been casting their eyes at Rio, now that Alcan is fait accompli see who else comes out of the woodwork... .... Yilgarn Mining???
Click to expand...
Is that a ramp? :D LOL

No word from the Budgie Kauri? Or, is that where you get the $151.15 from?
 
nizar said:
Isn't it weird how RIO didn't even put the offer before shareholders??
Click to expand...
They must be pretty confident of a higher bid in this environment, and been sure that BHP would out the proposal and go hostile. Bit of a risk, but the RIO shareholders will be thanking them...
 
Folks, after reading story in this today's SMH it seems that both RIO and BHP are being shortchanged on price because the large Chinese steelmakers are selling their low cost contract price iron ore to smaller steelmakers on the spot market at multiple contract price:2twocents.
So it seems to me that the fierce resistance of the Chinese to price rises and adjustments for transport is knocking value off both companies while the Chinese rake in profit that should be BHP/RIOs. The BHP/RIO takeover could be a way of merging that minimises (but would by no means eliminate) Chinese objections, and improves BHP/RIOs bargaining position on price.
But what would I know.https://www.aussiestockforums.com/forums/images/smilies/2twocents.gif
:2twocents
 
Just wondering why BHP share price is dropping at the moment. Is it likely to go back up strongly if and when the merger happens ?
 
BHP might drop in the short term but it still has good future with the never-ending boom in China and India.

I am a long term BHP holder and i see no problem ahead.
 
overule said:
BHP might drop in the short term but it still has good future with the never-ending boom in China and India.

I am a long term BHP holder and i see no problem ahead.
Click to expand...

Sorry, but there's no such thing as a never-ending boom :p:
I believe BHP have gotten themselves into a mess now - if the attempt fails; they go down. If it succeeds - the price they'll pay may be too high for traders to feel comfortable with.
 
im keeping my bhp and rio long term. i've been filing away contract notes today and cant believe the now low prices i have been buying and selling these for over the last couple of months. wish i held on to more rio's. kicking myself:banghead:
so now i think i'll go with a buy and hold strategy for the big guys and do more short term trading for specs. big learning process for me
 
stockwhizben said:
so now i think i'll go with a buy and hold strategy for the big guys and do more short term trading for specs. big learning process for me
Click to expand...

Just trade the share price.
A share price going up is no reason to sell.

Maybe its the specs that you should be holding onto since they are the ones with multibagger potential?

But once again, just trade the share price.

Don't complicate whats essentially quite simple.
 
My son in law is a Rio employee. He told me yesterday that they did a poll of all Rio GM's and it clearly indicated that the deal is as good as done, subject to BHP coming back with the right revised offer ($160+).

If BHP is stupid enough not to offer the premium they believe that someone else will do it.
 
Greenfs, that sounds about right although even when BHP comes back with that higher offer and assuming the boards accepts, there will still be a hefty premium on the RIO price cause another bidder is not out of the question.....Even though I think all this is hitting bubble proportions, RIO's assets are far more strategic than even BHP's...its just that BHP has more of them...its possible China will get pissed off with negotiating with these elephants and take matters into their own hands and make a bid............

Another thing, people are wondering why BHP's price is going down....takeovers almost always happen like this........Each of BHPs shares are becoming less and less valuable as the company desperately scrambles to exchange more your shareholding to RIO holders......in paying a big premium, BHP is devaluing their own shares.....of course they think long term its worth it
 

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