It has been quite well detailed on this forum the background of the bhp testing, why they wanted it, and what they have consequently had exposure to up at Newcastle; including dri.
As the testing period comes to closure bhp must be considering their next move. With $15 bill. in the warchest, to take out all of the apg technologies would be a smart move given the huge earning potential for the big ex-Australian.
The possible fly/s in the oitment is everyone else. APG is being approached weekly by companies wanting to talk. APG has been trying to put them off as they have been flat out with bhp testing.
For the others to access the technologies would be more expensive if they approached bhp for licencing rather than the current apg.
Therefore one possible scenario is that we see players take up a large slice of the company on-market before bhp has time to move. This would circumvent any monopoly plans of bhp. Therefore bhp would be forced to negotiate with these players in order to secure their holdings.
Thoughts?
APG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
