talks with pem, page-51

You dont know that yet Corey .
In effect if they merge it will be the same result as a takeover .PEM will need to makes an offer and if the CBH accepts ,in the end there is no difference .In this case PEM would seem to be the agressor ,for want of a better word ,and CBH will be the beneficiary ,hence CBH share price up 20% ,PEM down .The share price action yesterday points to this .There is not much point in anyone else vying for CBH ,as the synergies are enormous . The combined entity would be highly susceptible to a takeover from any multinational ,including ZFX and OXR .Make no mistake this will have a takeover premium attached to its share price after merging as it would be a very attractive target .One of the stumbling blocks to a takeover for CBH before, was Tohos 25% stake .This would be reduced to 13 or 14 % of the combined company .
This is a case of a merger creating REAL , HUGE ,synergies ,and will probably reduce costs at broken hill by 20c lb or more ,and free up capital that would have been otherwise spent at BH .This freed up capital can then be diverted to other projects ,such as Sorby .The combined company would be worth much more than if the stay seperate .Unlike some takeovers or mergers where there is usually a winner and a loser .In this case everyone will be winners .