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Om Bak · 12th November 2007, 05:55

For any one thats interested.

Nov. 11 (Bloomberg) -- BHP Billiton Ltd., the world's largest mining company, may need to offer a 60 percent premium to buy Rio Tinto Group, Perennial Investment Partners Ltd. said.

``Perhaps that's the price to get a friendly merger,'' Ken West at Melbourne-based Perennial Investment, which manages A$20 billion ($18 billion), including Rio shares, said in an interview shown on the Australian Broadcasting Corp. today. Rio paid a similar premium to buy Alcan Inc. for $38.1 billion, he said.

Rio won't consider any bid below 70 pounds ($146) a share, The Times of London said today, citing unidentified people close to the third-largest mining company. That's a 61 percent premium to the stock's price before Melbourne-based BHP said Nov. 8 Rio had rejected an indicative three-for-one share offer.

The proposed takeover, which may be the world's largest, underscores BHP Chief Executive Marius Kloppers's prediction that a five-year rally in commodities will be sustained. BHP may need to add cash to its offer, investors said.

Bloomberg.com: Worldwide

My guess is the final price could easily be north of $160!

12th November 2007, 05:55	#53 (permalink)
Om Bak Om Bak is..... Regular User Join Date: Dec 2005 Location: On the Hong Nam Posts: 918 vCash: 500 Rep Power: 97	Re: Trader’s thread For any one thats interested. Nov. 11 (Bloomberg) -- BHP Billiton Ltd., the world's largest mining company, may need to offer a 60 percent premium to buy Rio Tinto Group, Perennial Investment Partners Ltd. said. ``Perhaps that's the price to get a friendly merger,'' Ken West at Melbourne-based Perennial Investment, which manages A$20 billion ($18 billion), including Rio shares, said in an interview shown on the Australian Broadcasting Corp. today. Rio paid a similar premium to buy Alcan Inc. for $38.1 billion, he said. Rio won't consider any bid below 70 pounds ($146) a share, The Times of London said today, citing unidentified people close to the third-largest mining company. That's a 61 percent premium to the stock's price before Melbourne-based BHP said Nov. 8 Rio had rejected an indicative three-for-one share offer. The proposed takeover, which may be the world's largest, underscores BHP Chief Executive Marius Kloppers's prediction that a five-year rally in commodities will be sustained. BHP may need to add cash to its offer, investors said. Bloomberg.com: Worldwide My guess is the final price could easily be north of $160! __________________ All advice is to be taken with a grain of salt, a dash of pepper and grilled with medium heat.