I am not a guru with charting, amatter of fact I don’t know much about it and I think there are some wiz kids here that will leave me for dead, therefore I will not make an attempt to scrutinise the current situation from a technical point of view. I am a fundamental long medium to long-term trader, I apply my knowledge to pick the winners. I can tell you with confidence that I believe that BXB is a gem to keep for many years to come but currently it is also a target for a takeover, the eyes is on it primarily by Toll Holdings, which I think will end up eventually buying it at a good price some time soon down the track or maybe merging with it. Toll holding pondering on BXB is a tactical financial game that Harvey Norman played during the time when he was interested in Rebel sports (remember that one) On the other hand, the reason Asciano got involved with BXB is logical and is easily explained, which will help exposing that Toll the primary buyer of BXB. As you all know Asciano was spun out of Toll, the directors who are now in charge of Asciano have had some insider and privileged information prior to the spinning of, as they were preparing for the separation they were all one happy family. They knew well that Toll has the eyes on BXB so they decided once they separate with their infinite wisdom to take a bite and a chunk out of it to pocket the difference once the take over eventuate. Asciano was never interested in a take over they just wanted to enjoy the ride Don’t forget that Asciano’s directors once the separation eventuated they stopped knowing what goes inside toll board room meetings and therefore do not have an exact time of when the takeover will happen as they became completely separate listing.
This punt by the directors of Asciano tell me that they are expecting the takeover to happen some time soon and to confirm that they still think it will happen is their latest decision to retrain their part of BXB which is I think a 4.2%.
I believe the take over or the merger will happen in early 2008.
Keep holding unless you are a short-term trader and have no patience.
Regards
The Tone
BXB Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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