bhp/rio deal is off fmg is a sitting duck, page-3

Why would BHP would be interested in FMG??

It already has mountains of much higher quality iron ore...and FMG almost has more debt than BHP itself has.

There are a number of mid-tier high grade low cost producers with little to no debt out there going for a song....for example, WSA immediately comes to mind, and with Ravensthorpe now being mothballed, it might just fit nicely for them for continued nickel exposure....perhaps even a number of minnows that have proven up resources but can't get off the ground from lack of funding in this climate.

Nothing wrong with FMG, but I just think that BHP already has more than enough iron ore, and FMG's debt might not be so appealing when consideration is given to other opportunites already out there. Yes, I know that RIO is predominantly an iron ore stock anyway, but I would suggest that the RIO takeover had far more to do with controlling the iron ore market rather than acquiring more iron ore tenements.

Apart from that, with Twiggy holding so much of the stock, he might be difficult to convince without a very large takeover premium...factor that in as well, and BHP might very well overlook Fortescue without any reservations.

IMO.