Some good thoughts here. I think the relatively high aussie...

Some good thoughts here. I think the relatively high aussie dollar would blunt interest in QBE but considering that a predator would probably apply a 30-40% premium to current share price, a currency difference of - + 10% would not be insurmountable.

I would throw up if QBE bid for IAG. I think 50% of the IAG share price is a priced-in takeover premium as it traded at a p/e of 75 when its share price was recently at 3.33 (see http://www.hotcopper.com.au/post_threadview.asp?fid=1&tid=1241429&msgno=5655059#5655059). At that earnings ratio, it makes even QR National look modestly attractive even with all its crystal-ball gazing, pie in the sky, no carbon tax impacted, expected doubling of earnings next year.