morgan stanley rumours

Rumours apparently that Morgan Stanley are doing the buying on behalf of the Chinese. Wouldn't surprise me considering how cozy they are with the Chinese.

But can take anything they say seriously considering how much time they spend talking down commodities. Only a few weeks ago Gerard Minack was telling us the resources boom was over and we were about to plunge into a recession. That was right at the start of the run so must have backfired but watch out for these attempts to sucker you - take anything Morgan Stanley say with a grain of salt.

http://www.theaustralian.news.com.au/story/0,25197,23697201-30538,00.html

Chinese rumours move BHP

John Durie | May 14, 2008

BHP stock was up 4.3 per cent at $47.50 in morning trade, on rumours of an imminent move by Chinese interests to buy 10 per cent of the company.

One story doing the rounds says Morgan Stanley is in the market wanting to buy 10 per cent of the company, which would cost $16 billion.

BHP’s share price hit a high of $48.50 before easing slightly on heavy turnover, with some 7.5 million shares changing hands, roughly the average full-day volume for the stock.

The market has been expecting a Chinese move on BHP, with talk that the Foreign Investment Review Board has already been sounded out on the purchase.

If the talk is right, and the plans are to buy just 10 per cent, it wouldn’t be enough to stop the deal, and in fact could be seen as a vindication of its plans to buy Rio.

But a sizeable stake in the company would potentially provide it with a seat at the table, and some upside from the booming Chinese demand for BHP’s resources.