SMOKING...What?I may have missed something but isn't the issue...

SMOKING...
What?
I may have missed something but isn't the issue ratio, not market cap or sp.
While the market cap of IOH may be 5pct of FMG, so long as the shares on issue are 5pct then the ratio is the same.

More the to point was the one raised that suggested FMG may realistically believe they should be valued at $10.

If we were to go purely on book value then isn't FMG about 70 or 80 cents a share while with recent cash IOH sits at just over 60cents? One for one does not look too bad on current value....?

Anyway I agree that the FMG outlook for cash flow, all the infrastructure etc is very rosy so a 1:1.5 deal would still be a very nice outcome for IOH holders. (dreaming of course)