Guy Elliott from RIO quoted in The Australian today -
"Asked if the company was sticking to its previous comments that it would entertain "single-digit" billion-dollar acquisitions, Mr Elliott said: "Most companies would not confine themselves, particularly when it comes to mergers and acquisitions, and I don't think we should."
"The company would assess potential acquisitions as to whether they were better value than building new mines, and whether they were large, low-cost assets and allowed Rio to keep its credit rating, he said."
Note the "mines" reference. Atlas ($3.2bn) or FMG ($18bn) seem the only likely Australian Iron Ore producing targets.
A bid for FMG at $9 per share (50% takeover premium)would cost $25bn. If I were a betting man...........
Gary
AGO Price at posting:
$3.49 Sentiment: Hold Disclosure: Held
