price target 5.90

Exerpt from Rudi On Thursday
FN Arena News - October 17 2007

Analysts believe Murchison’s offer might ultimately be successful, simply because the advantages of a combined entity (larger scale, relatively less investments to reach the same goals, twice) look so compelling.
UBS initiated coverage this morning with a Buy for each of the separate entities. Keep in mind that the key factor in this story is that both companies need the development of new rail and port infrastructure for their growth prospects.

UBS, and others, believe the sum of both is poised to turn out larger than two. For starters, the analysts foresee up to $400m in savings simply by sharing infrastructure and equipment.

The broker has placed a target price of $6.50 on shares of Murchison, but regular readers of our daily Australian Broker Call will know already that Merrill Lynch has held a $7 target for the stock for a while now.
UBS’s target for Midwest is $5.90.