Really interesting that the market has effectively wiped the...

Really interesting that the market has effectively wiped the cost of the deal off the face value of WES shares today. I guess a few things are troubling the market, not least of which is that it knows that more will have to be offered to make the deal attractive to Lynas holders. Also WES holders will be nervous about another new risky acquisition after the Bunnings UK foray. WES is a very blue chip stock which appeals to many risk adverse people, those people would never dream of investing in Lynas and are now facing the prospect that they could be forced into investing in Lynas through an acquisition such as this.

I think as analysis of the deal and company research into Lynas (like the UBS research) starts to spread across brokers and analysts desks the WES price will recover. On my Commsec app Goldman Sachs, Consensus and Morningstar Premium do not even have recommendations for Lynas. The broader market is clearly uninformed about the potential of Lynas, particularly backed with a mammoth like WES.