Any takeover offer which is based on 90% script and 10% cash is...

Any takeover offer which is based on 90% script and 10% cash is prone to be smashed by the hedge funding shorts. It should (not could) put this takeover at risk unless IOH major shareholder wants out of its iron ore at any price.

Recall BHP Billiton's offer for Rio Tinto. It was a script offer and BHP Billiton share price got smashed and the bid fell over. Rank and file IOH shareholders should demand BCI to revisit the offer and come up with a much higher cash component. BCI's current offer is valued at $1.19 after it was originally valued at $1.59. Sure $1.19 is better than the 90 cents IOH was before the offer but does it value the company at the level BCI thought it was worth a month ago.

As I said, unless IOH is prepared to quit iron at any price, it should ask for a better cash component which will firmly value IOH at around $1.60.