As the iron ore price gearing effect works on FMG's share price, you never know it may pay it to launch a scrip bid for us. I assume it needs its cash to pay down its debt. But the higher than anticipated iron ore price might make it try to exploit its high share price; of course I wouldn't want its paper because if Andrew Forrest was issuing any, you'd know it was overpriced, and that its next move was sure to be down. The Formosa Plastics deal to get FMG's magnetite project up and running might just be the thing to give him the confidence he can afford to bid for us. Hardly makes any difference issuing a load of FMG shares priced at over $5 to buy us out for A$270m, and for that FMG could get the bonus satisfaction of screwing up BCK. When should FMG strike? Just as we are all wailing about an imminent CR! Just a thought.
P.S. It is perverse to see a strong iron ore price and us moving down.
FMS Price at posting:
3.7¢ Sentiment: Hold Disclosure: Held
