You would not successfully take over FMG for less than full value. The shareholders are too savvy to fall for that. And full value is at least $40 per share.
Full value constitutes about a PE of 12 using a long term 10 year inflation adjusted IO price of USD110. Plus $10B for IBO and $10b for FFI. That comes to approximately $40 per share. Twiggy and the other big holders wont sell for less than that.
And given the capital gains tax implications Twiggy will want shares in the parent company not cash. He would end up owning $40B worth of BHP or Rio shares which would be enough to exercise a high degree of control over the company. I don't think the idea of BHP or Rio swallowing FMG for a cheap price is realistic.
If Twiggy had effective control of BHP shares it would massively improve BHP as a company but I don't think it will happen.
Iron ore price, page-39603
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Last
$18.87 |
Change
0.590(3.23%) |
Mkt cap ! $57.76B | |||
| Open | High | Low | Value | Volume |
| $18.86 | $18.90 | $18.44 | $375.1M | 19.96M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 900 | $18.86 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $18.88 | 3586 | 4 |
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| Last trade - 16.10pm 31/07/2024 (20 minute delay) ? |
| FMG (ASX) Chart |