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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (23676)	11/8/2007 11:40:37 AM
From: E_K_S	Respond to of 78732

BHP Courting Rio Tinto thestreet.com From the article:"...Australia's massive diversified miner BHP Billiton has offered to take over London-based Rio Tinto , but the overture was quickly rejected. BHP says it wrote a letter to Rio Tinto "outlining a proposal in relation to a potential combination ... incorporating a premium." Rio Tinto said in a statement on its Web site that it wasn't interested in BHP's terms. Under the proposal, Rio Tinto said, its stockholders would receive three shares of BHP for each share of Rio they hold. That would take the value of the deal well past $100 billion. BHP indicated that it wasn't swayed by Rio Tinto's brushoff, saying it "intends to continue to seek an opportunity to meet and discuss its proposal with Rio Tinto." ..." ------------------------------------------------------------- These two companies have been my best performers over the last several years. It's nice to find that after their huge gains, the companies still believe their holdings are undervalued. A merger might help make their operations more efficient by reducing operating expenses. The overall value proposition is still in place but some type of merger might help increase their marginal earnings looking forward. finance.yahoo.com They both spend a lot of money in their transportation costs to deliver their material around the world. There was some discussion that they were looking into buying a bulk shipping company to fix these costs. EKS