VilleThe sp is irrelevant. What is important is the market cap,...

Ville

The sp is irrelevant. What is important is the market cap, you have to understand that a company is valued by the market cap NOT the share price.

By the same argument you could ask why RIO is worth more than BHP. Well answer is, they are not, the market caps are different, it is only a difference in the amount of shares on issue that gives the perceived difference in value.

I think too many people are getting hung up on the consolidation issue. The company will be worth the same and be operating on the same PE. Why would the stock get sold down? Many ideas have been put forward but I don't think that these are logical reasons that would suggest why the sp will fall post consolidation.

Cheers.