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Maybe BHP is about to launch a takeover bid?

Something is sure happening now over $91 a share

1309 [Dow Jones] BHP (BHP.AU) would be most likely bidder for Rio (RIO.AU) in takeover scenarios analysed by Citigroup. "Rio Tinto's strong cash flow and nominal gearing may bring it into the crosshairs of private equity, but we think BHP Billiton is a much more likely bidder given synergies and nationalistic control issue of Australian assets," says broker. Says deal is highly earnings accretive using conservative assumptions, with main consideration being concentration of iron ore/coking coal market shares and lack of BHP CEO elect. Adds acquirer could unlock 40% discount that RIO trades at A$117/share sum-of-parts valuation. Says 30% premium seems to be benchmark market expectation for takeover. Keeps BHP at Hold with A$33/share price target. Keeps RIO at Buy with A$94 target. BHP up 2.4% at A$31.33, RIO up 2.8% at A$89.25. (DWR)

<blockquote data-quote="MiningGuru" data-source="post: 154531" data-attributes="member: 3809">Maybe BHP is about to launch a takeover bid?Something is sure happening now over $91 a share1309 [Dow Jones] BHP (BHP.AU) would be most likely bidder for Rio (RIO.AU) in takeover scenarios analysed by Citigroup. &quot;Rio Tinto&#039;s strong cash flow and nominal gearing may bring it into the crosshairs of private equity, but we think BHP Billiton is a much more likely bidder given synergies and nationalistic control issue of Australian assets,&quot; says broker. Says deal is highly earnings accretive using conservative assumptions, with main consideration being concentration of iron ore/coking coal market shares and lack of BHP CEO elect. Adds acquirer could unlock 40% discount that RIO trades at A$117/share sum-of-parts valuation. Says 30% premium seems to be benchmark market expectation for takeover. Keeps BHP at Hold with A$33/share price target. Keeps RIO at Buy with A$94 target. BHP up 2.4% at A$31.33, RIO up 2.8% at A$89.25. (DWR)</blockquote>

[QUOTE="MiningGuru, post: 154531, member: 3809"] Maybe BHP is about to launch a takeover bid? Something is sure happening now over $91 a share 1309 [Dow Jones] BHP (BHP.AU) would be most likely bidder for Rio (RIO.AU) in takeover scenarios analysed by Citigroup. "Rio Tinto's strong cash flow and nominal gearing may bring it into the crosshairs of private equity, but we think BHP Billiton is a much more likely bidder given synergies and nationalistic control issue of Australian assets," says broker. Says deal is highly earnings accretive using conservative assumptions, with main consideration being concentration of iron ore/coking coal market shares and lack of BHP CEO elect. Adds acquirer could unlock 40% discount that RIO trades at A$117/share sum-of-parts valuation. Says 30% premium seems to be benchmark market expectation for takeover. Keeps BHP at Hold with A$33/share price target. Keeps RIO at Buy with A$94 target. BHP up 2.4% at A$31.33, RIO up 2.8% at A$89.25. (DWR) [/QUOTE]

Verification