this is serious lets hope, page-65

thanks inc.

just a quick correction, $1.50 bid over the $1.35 placement is only 10% premium, not 30%, but ur point remains.

i too hope we get a battle between the chinese and bhp.
i'll bring the popcorn.

motsa,

i dont think the potential bid on UMC is an indication on the status of the rio/bhp merger.
its way bigger than than a 160mt deposit.
these guys talk in billion tonne deposits.

i agree with ur understanding of the JV terms.
they combine pilbara assets and bhp inject $5b in cash for a 50-50 split.

imo, bearing in mind that i read those documents months ago, bhp could still buy UMC under their brand and it would then form part of the assets to be merged.

not sure on what basis they value the ore assets, but its possible that bhp buys umc, adds the economic $$ value of the Railway deposit to its assets and then is maybe up for a smaller cash injection.

BUT, theinc makes a good point re the stamp duty implications.

do bhp just accept these millions in stam duties as collateral damage in keeping the chinese out of their playground?

we'll find out soon enuff...