Ann: BCI: BC Iron to acquire Iron Ore Holdings, page-2

First impressions (from an ex-shareholder):

- this is a deal that should have been done earlier in the year before BCIs share price fell of a cliff. BCI is now paying a much higher premium (ie. IOHs share price has remained relatively stable with respect to BCI while its cash position has declined)
- Kerry Stokes is no fool and can probably sense the strong headwinds confronting the iron ore market and IOHs ability to fund Buckland
- this is essentially an Investment Bankers deal and is more beneficial to IOH. Brings back memories of when Kerry Packer shrewdly sold Channel 9 to Alan Bond
- it will be interesting to watch BCI's share price once it resumes trading (perhaps the high implied offer premium is there as an added protection)