Galv,
I've been having a think about this. I can understand your logic, and I am sure that all good business development groups do this analysis. But what about the @risk factor?
I am coming around to thinking that if both CEO's support it along with both boards, then OXR board must see some downside to your analysis, otherwise why would they support it? I suspect that both companies believe that by combining, the risk rating for the new company drops due to the greater commodity spread. Together they can weather shifting commodity prices better than if they were alone. They become a small BHP. ie enough of a commodity spread to have reliable earnings growth. This then translates into a better performing share price with less volatility and this increases shareholder returns.
OXR directors must see significant advantage in the merger. Their Business Development teams must be painting a picture very different to you.
comments pls
horse
OXR
oxiana limited
