Jesimore You ask an interesting question. I think if you hold...

Jesimore

You ask an interesting question. I think if you hold cooper there is an arbitrage opportunity, especially under the cash plus share option. However the risk is the takeover fails and IPM trades with all the other oliers much much lower. Given that it has moved down a little recently and it pays a good dividend, I would say the flow would be low high 50s the divident yield level; going forward would also be in question given the oil price and capital commitments

I am not sure that the takeover will go ahead as a number of conditions still need to be waived. The market dropping by 20% would have been triggered and then there is the 90% accetance level.

If you hold cooper you could sell some and by the equivalent IPM value in IPM. If the TO goes ahead opting for the cash option you should benefit a fair bit.

i have to confess I sold the IPM shares I bought yesterday morning at 75 for a 78 average yesterday afternoon and today. Why? Because I figure in this market there is a risk the TO will fail and IPM would drop more, and in the current environment with the oil price sagging and the loss of TO protection couild result in some panic selling.

EL, I think most people do care about the ST share price of all their stocks and few have the the courage, or emotional disposition to not worry. Things do look very oversold, however one needs to keep an eye on profitability. Oil relative to other resources is still stacking up from a profit margin point of view, but it is sure to start hitting profit margins if it doesn't recover soon. Not sure what IPMs profit margin is but I would say you cna asume a 25% reduction in revenue in mosr oilers if production has not changed