worth a read!!!
WMC Resources {$7.20 5.0 0.70%} the market is finally getting excited about either an increased bid by Xstrata in next few days or the much anticipated counter bid from BHP or RIO. Interesting to see Capital has cut its stake in WMR from 8.17% to 6.92%, or 81.1 million shares, selling about 14.2 million shares. The stock got a kick along mid morning from around the $7.15 trading quickly to a high of $7.31, on speculation Xstrata will increase their $6.35 bid in the next couple of days, which of prompted short covering, once that washed through the stock came back in afternoon. Xstrata recently extended the offer by one month to Feb.28. after garnering less than 1% of the stock. WMR may also be up today with many watching for Thursday at 5.00pm when RIO reports, as that may show whether the company is likely to mount a counter offer against Xstrata's takeover bid for WMC Resources With a massive +99% rise in profit expected after the past year - a smaller than expected dividend or payout could indicate that Rio Tinto was gearing up for a bid for WMC.
