analyst suggests bidding war possible

From Wise-Owl:

Following a decade of exploration and development planning, Exco has finally crystallised the value underlying its Cloncurry Copper Project (CCP) for shareholders. Management have forced the hand of neighbouring copper producer, Xstrata, which has agreed to purchase the asset for $175m. The deal requires shareholder approval, but if it proceeds, will leave Exco with cash reserves of $220m (62cps), two modest income generating assets and a large exploration portfolio in the Cloncurry region. As the stock is merely tracking its post transaction cash backing, we see further upside potential and retain our 73cps price target. The primary risk is major shareholder Ivanhoe Australia (ASX:IVA), which has publically reserved its view on the deal. As the tension could induce a bidding war, our advice is to continue holding.

wise-owl Checklist
? Management have finally forced Xstrata?s hand, securing a $175m price tag for the Cloncurry Copper Project.
? The sale will leave Exco with cash holdings of $220m.
? Exco is only trading at its post transaction cash backing. Appreciation of its exploration assets or a rival offer could therefore re rate the stock.
? The stock retains strong institutional support. Ivanhoe Australia (22.98%), JP Morgan (7.43%), Washington H Soul Pattinson (6.18%), Sin-Tang Development Pte Ltd (5%).
? The stock remains in an uptrend.