Hello, writing this from sunny Bangkok.
I'll go out on a limb here and say LHG is a major short. There'll be NO takeover of LHG from ANYBODY.
TOO EXPENSIVE!!!!!!
1539 [Dow Jones] Spot gold now US$493.80 vs US$499.10 NY close and 18-year
high of US$502.80 struck yesterday. Falling price could complicate Citigroup's
plan to sell A$399 million chunk of Lihir Gold (LHG.AU) shares bought from Rio
Tinto. LHG likely to fall to indicative bookbuild price of A$2.15-A$2.20 from
yesterday's close at A$2.35 and 7-year high of A$2.38. "Here's a stock that's
doubled within 6 months and the gold price is at 18-year highs; it's a big ask,"
says senior institutional trader. Says not inconceivable that Citigroup might
have to lower price or delay sale of Lihir shares. Another dealer says, "With a
bookbuild that doesn't close until 9 p.m. tonight, it would be interesting if
this fall were to continue. It makes the whole situation interesting, because at
the moment, that chunk of stock is owned by Citigroup." (DWR)
1146 [Dow Jones] Fact corporates haven't moved on Rio Tinto's (RIO.AU) 14.5%
stake in Lihir GOld (LHG.AU) before now indicates takeover highly unlikely to
result from today's sale, says investment banker, adding no secret Rio was
seller of LHG stake, considered noncore. Now diversified miner believed to have
sold stake to Citigroup for A$400 million, with bookbuild at A$2.15-A$2.20/share
in works today, targeting institutional investors. Adds global mining predator
would also be put off by LHG price more than doubling last six months. (JAD)
LHG
unknown
