RIO and BHP

[M34N]

Is a second offer from BHP likely or not?

I'm thinking if there's a jump in RIO's shares tomorrow anywhere near what's happening in London now, I'll be selling out.

I would probably hold for a while at the least, of if you're not that confident, maybe sell some of them off.

Look at what happened with Coles when their takeover was announced, they went up, they did fall after the Texas group pulled out, but their price rallied again even higher after Wesfarmers came in.

And same with Qantas, they knocked back a takeover and now are trading above their offer price, I think that was around $5.50? Now about $5.80.

 

[mlevit]

The problem I'm facing is not knowing if a) There will be a second offer and b) The share price will reach the same heights it is expected to reach tomorrow.

Plus, how likely is this acquisition really? With all the competition/monopoly laws our there and all the approvals BHP has to obtain will this acquisition go beyond just a bid?

 

[shinobi346]

this might explain BHPs silence when rio went after alcoa. two birds with one stone perhaps?

 

[Poker]

BHP pursuing RIO (potentially the largest acquisition in history) in current market conditions (where there is a fear of U.S recession, slowing of global economy - *granted the proposal is all share*), I think, is a great reassurance of the strength of the Australian economy and longevity of the mining boom.

Let the good times keep rolling

 

[Caliente]

Kloppers will be remembered as a genius or a fool. But good on him for being a bold visionary.

Either way he's going to make history ^_^

 

[bvbfan]

If it goes through it will be the largest acquistion ever by almost two times I think

 

[Garpal Gumnut]

I'm not sure whether this is old news or not, RIO's imminent reply to BHP's takeover strategy.

http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article2935637.ece

From the Times.

gg

 

[vishalt]

That would definitely scathe and embarrass BHP.

Kloppers will probably crack a bolt and just go hostile in the week maybe.

 

[vvguru]

A Chinese newspaper just disclosed a Chinese government's plan for a consortium of steelmakers and China Investment Corp to put up a bid for RIO at US$200bil offer, i think now the party gatecrasher coming in. tough road ahead for BHP plan.

here is the link, but its in Chinese.

http://finance.sina.com.cn/chanjing/b/20071124/21294212755.shtml

 

[barnz2k]

reading the google translated version now.

RIO is up 6% already today.

Would RIO sell to china if the price was right?? if it becomes a legitimate 200Bil offer then what is BHP going to have to counter with?

 

[shinobi346]

A Chinese newspaper just disclosed a Chinese government's plan for a consortium of steelmakers and China Investment Corp to put up a bid for RIO at US$200bil offer, i think now the party gatecrasher coming in. tough road ahead for BHP plan.

here is the link, but its in Chinese.

http://finance.sina.com.cn/chanjing/b/20071124/21294212755.shtml

The Chinese fund in question is denying it.
http://au.us.biz.yahoo.com/rb/071126/riotinto_bhpbilliton_china.html?.v=3

I also think if the chinese steelmakers are going to big for RIO it should void their objection to BHP buying it.

 

[Sean K]

When the bid gets blocked by Europe, who will BHP and/or RIO go after I wonder?

Or, no more M&A...

 

[Miner]

The result of BHP financial is out when the market went to sleep in Australia.
Good result with high dividend and return on investment increase.

However probably the market expected much more and we will see tonight at NYSE and tomorrow morning in ASX.

With 85-90% iron ore price rise market profit expectation has already probably discounted in price increase in SP.

Let us see

http://www.asx.com.au/asxpdf/200808...85FA2=0&bcsi_scan_filename=31brjp9plp2x91.pdf