Ann: BHP Billiton and Petrohawk Announce Merger A, page-7

re: Ann: BHP Billiton and Petrohawk Announce ... Warning, i think they payed to much for Petrohawk, from memory they bought it on a p.e of 40 and this will result in profitability being diminished for 2011/12 financial year results. A knock on the door for some more cash i.e. possible capital raising in the future is on the cards and you better hope the new shares are issued at a higher price or else more dilution for shareholders in the coming years.Mr Kloppers also talks about spending billions on this project in the coming years.Seems he was under the pump to do something with the cash.A 65% premium and taking on 3 billion extra of debt is a little bit to optimistic in my view. When are these guys going to realise that overpaying for something rarely works out in corporate activity but yes record profits i hear you in the future but one question to ask is how much money is required to generate those profits.Golden rule number 1 don't overpay or you lose.I actually liked the look of bhp a few years ago but after these acquisitions you can pritty much bet on lower intrinsic values moving forward.I hope i'm wrong though for shareholders sake and even if gas prices start to sky rocket then this investment in "shale gas" i.e. "The Petrohawk acquisition" as a minimum becomes equivalent to holding a government bond.I'm happy for people to bookmark this post but my gut feeling tells me bhp payed to much for Petrohawk.A clear indication of incompetence on Kloppers behalf.