fmg-brm-frs merger is an attractive option, page-19

Question time!

Could BRM come out with a capital raising programme now? If they come out with a ?do nothing statement? and then a capital raising programme for the $1.7B they want or part there off. This would give all current investors and possibly the big boys like BHP or RIO / FMG to come in and take a stake in the business. Now surly it was the intention of BRM to raise some capital soon anyway!
I would think therefore that BRM may aim to raise the funds at around $5.50 to $6.00 possibly coming in below the current bid offer.
The other option is that BRM simply say to low better offer please? This would then open the door quickly to other bidders and the offer price may finally come to rest around $8.00 > $12.00
It has always been the intention of the team at BRM to go into production so I?m not sure I can see WR just giving away his baby and if he did it would be a terrible loss.
WR has always stated that they are doing this for the good of the loyal share holders and that with only 143,000,000 shares on offer it makes the company worth more than current offer.
There is the problem of Rail and other factors that need to be looked at quickly.
So what dose this mean to us, the common share holder? Well I think it makes BRM one of the biggest Iron Ore business deals to happen in many years and that is a great out come for all of us as long as we stick with the Board.
Finally, if you do the numbers based on all the data to date! If BRM got to production and in five years from now where producing the number of tones they aim to ship then I would say the share price would be more like $40.00+ bit it is a big ?if?

W1