Why 10% above the offer:
1) Because people like you expect another offer from BHP or IGO (or someone else). It will change as people see a bid is not coming.
2) Because hedge funds see a potential arbitrage opportunity. Buy it at a small premium, and hope Wyloo agrees to up their offer above that premium (or someone else comes in - point 1). They will all be calling Wyloo saying I can deliver you x% of the register if you pay them a small premium. Successful bidders (even if no other competitors) often have to pay around 5% more because of this reason - hedge funds holding them out.
3) Short covering
Wyloo will hold out doing anything until the Target Statement and until it becomes clear that no one else is bidding - wait 30-40 days.
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