directors buying..., page-7

Peteey,

if by rabbits u mean more potential, then i agree.
especially after reading page 24 of the fin review today.

the article 'Asset spin-off plan on table' is summarised as follows:

- the EU regulators have an issue with the anti competitive element of the merger.
- to pacify the EU regulators, BHP is entertaining the idea of spinning off a portion of their IO assets into another company with a totally seperate board of directors, thereby arguing it has created more competition.
- alternatively, some observers have suggested BHP will have to offload some of the combined entities iron ore assets to pacify the regulators and get the merger approved.

BHP is going to have to do one of these things to appease the regulators otherwise their bid may fall thru.

and they seem hell bent on this bid succeeding.
another article on the same page reports that BHP have been accepting spot prices of $60/t and selling direct to smaller chinese steel mills in order to keep production going at current levels, while at the same time rio and vale talk of production cuts to maintain their $100/t benchmark price.

BHP is very much taking an aggressive line for both the IO and takeover bid.

which leads us to a potentially very large rabbit should BHP be forced to relinquish some iron ore assets to get the merger approved.

that would leave UMC in a very enviable position of location location location.