here is an idea axegun... (probably a wrong one, but an idea...

here is an idea axegun... (probably a wrong one, but an idea never the less...)

could it be that the multi-million dollar cost of the merger (i.e. advisors, lawyers etc), and the potential multi-million dollar implementation cost of the merger, might chew up CAH's earnings for the next six to twelve months???


maybe? maybe not? Regardless, you only have to look at the market response to this merger plan to know that something is unusual with this deal...


prior to this merger plan being announced on 15th June 2011, the market stood as follows:

CAH was $1.705 per share
CQT was $0.45 per share
USD/XAU was USD$1525/oz
AUD/XAU was AUD$1425/oz

today, after digesting all the available information, the market stands as follows:

CAH is $1.575 per share... down 7.6
CQT is $0.48 per share... up 6.7%
USD/XAU is USD$1885/oz... up 23.6%
AUD/XAU was AUD$1785/oz... up 25.3%


I wonder if the questions that were posed by the Deutsche Bank chap during the initial conference call on this merger regarding the market response are ringing in any ears now?? Refer specifically around the 29.45 minute mark... http://www.brr.com.au/event/81724?popup=true

Is it still "way too early" to judge???

cheers... marwoode
p.s. in case you are interested, SBM are up 18.5% over the same period! By the way, the theoretical SBM bid would now value CAH at $1.93~!!!