What will happen to BHP and RIO after Feb 6th?
- Thread starter zhang66777
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I think BHP shareholders will be happy with either way, including a walk away. We dont want to pay too much and BHP is performing stellar as they are anyway.If BHP aquires Rio then thats good too, as with the synergies and strength it willl be a very nice businesss.
Rio on the other hand which shot up like a hot air baloon with the takeover announcement is likely to deflate just as quick if BHP walsk away, leaving some very dumbfounded shareholders and red faced board. Greed takes over sometimes.
Sure their is value in the stock, but the implied premium will go and this could snowball as investors and traders bail out. Dangerous sopt to be in if you ask me.
With the Chinese potential blocking stake in Rio this looks like it could be quite likely the outcome.
Rio on the other hand which shot up like a hot air baloon with the takeover announcement is likely to deflate just as quick if BHP walsk away, leaving some very dumbfounded shareholders and red faced board. Greed takes over sometimes.
Sure their is value in the stock, but the implied premium will go and this could snowball as investors and traders bail out. Dangerous sopt to be in if you ask me.
With the Chinese potential blocking stake in Rio this looks like it could be quite likely the outcome.
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Which manufacturer would want BHP and Kloppers to get the coal monopoly ?
Certainly not a Chinese one , browse the coalers for position and vunerablity .
Certainly not a Chinese one , browse the coalers for position and vunerablity .
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ithatheekret - I understand that their are enormous coal deposits in Mongolia suitable for open cut mining so it is not likely in the long term that BHP-B would get a monopoly in coal that would threaten China.
Further to BHP-B, are their any thoughts on the likely reaction of the Australian Gov to the Chinese/Alcoa move. It seems to me that the leading players are in Oz at the moment to find that out.
Further to BHP-B, are their any thoughts on the likely reaction of the Australian Gov to the Chinese/Alcoa move. It seems to me that the leading players are in Oz at the moment to find that out.
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Chinalco ready to sell
Updated: 08:04, Tuesday February 5, 2008
Chinalco, Rio Tino's newest major shareholder, has confirmed it is prepared to sell its 12 per cent stake in the company, to BHP Billiton.
That's if it makes money on the deal.
The company says the purchase was a strategic investment to diversify its options and won't interfere with Rio management.
The buy was made in London because of market liquidity and in terms of timing the decision was made based on price.
The fact that it came close to BHP's deadline to formalise its bid for Rio was pure coincidence.
It's also confirmed it has no future plans to increase its 12 per cent stake in Rio, although it is looking at other Australian investments.
On the sector as a whole, Chinalco executives say they see strong demand and prices for metals and that the general global outlook is strong.
Updated: 08:04, Tuesday February 5, 2008
Chinalco, Rio Tino's newest major shareholder, has confirmed it is prepared to sell its 12 per cent stake in the company, to BHP Billiton.
That's if it makes money on the deal.
The company says the purchase was a strategic investment to diversify its options and won't interfere with Rio management.
The buy was made in London because of market liquidity and in terms of timing the decision was made based on price.
The fact that it came close to BHP's deadline to formalise its bid for Rio was pure coincidence.
It's also confirmed it has no future plans to increase its 12 per cent stake in Rio, although it is looking at other Australian investments.
On the sector as a whole, Chinalco executives say they see strong demand and prices for metals and that the general global outlook is strong.
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I reckon Chinalco/Alcoa's stake in Rio is a clear sign that the mining boom is still alive (with many more years to go) and that the Chinese are snappy about their iron ore supply while Alcoa is scared about its position as one of the biggest aluminum plays in the world.
The Chinese government and Alcoa surely wouldn't be dumb enough to pay $150 for each Rio Tinto share if they thought it was a waste of money.
The Chinese government and Alcoa surely wouldn't be dumb enough to pay $150 for each Rio Tinto share if they thought it was a waste of money.
