I have holdings in both companies and I am in two minds on a...

I have holdings in both companies and I am in two minds on a takeover. Both are priced fairly cheap relatively speaking by the market compared to even middle of last year. The iron ore prices are still fairly buoyant and I am sure BHP reckons that they will be more upside to ramping up productions now they is talk of recovery/ growth in the world.

With these in mind, it is a good time for them to strike but lousy timing for existing shareholders because ,

1. Fmg is having their cash issues
2. Rio and bhp have jv in place and I don't believe they will trample over eachother to risk that cosy relationship
3. Too many hurdles for Chinese like firb approval that can take months

we will have to see what the offer is and from whom.