please no scrip bid from bck next week, page-13

nobullnotOzzie

"A deal with Rio would extend the working life of Rios's railway surely, and thus improve the returns on it?"

I don't know, and havent got the time to research on it. Do you have any facts or figures that might compare or come close to being similar with something else?

"Buying us would not be comparable to buying Alcan or Riversdale (they were high cost acquisitions compared with buying us)"

You stated ~$800m to take FMS out @ 15c. With RIO looking at divesting assets and the like, I can assure you that $800m would be huge in RIO's eyes, especially in these uncertain times, and especially with the US FED giving the world markets a feeling of what would happen when they stop buying $85b a month.

"With the BID (Brockman Iron Deposit?) type of ore as a starter (low strip ratio and no beneficiation required i.e. a DSO operation is possible with this type of ore)"

It is, and there is a reson why FMS wants to increase its BID as it knows that's the only way to gather more interest. But with FMS now targeting between 180 – 280Mt (at 55 to 58% Fe) from what they have currently of between
110 to 160Mt of ore at 55 to 58% Fe, would RIO be happy with that? Maybe? Maybe not? How long will it take FMS to get to 280Mt? By then FMS might be 1c and RIO could put an offer for 10c? Maybe? Maybe not?

"Also Rio would be dealing with authorities it already has experience of dealing with (not as risky as dealing with Mozambique as in the case of the Riversdale acquisition?)."

Yes, but that alone does not mean a company is great value.

jvrossie

"Some nice points Hussy. What would you think the sp would be if a better deal than MMK were to arise?"

That article was from 1 year ago when the SP of FMS was much higher. Things have changed. Not to say they might not change for the better in the future, but old articles don;t take in effect today's marketplace. I wonder what Bloomberg would say now?