if you cant tell how this now becomes a 'growth' stock you...

if you cant tell how this now becomes a 'growth' stock you shouldnt be talking about stocks at all

dividend payout ratio is based on % of NPAT paid as dividends - if you are using money to pay for IOH capex then you wont have as much NPAT therefore you won't get as much in dividend.

heck - they could increase the payout ratio and the dividend amounts would still reduce

BCI - once deal is done - will increasingly rise and fall based on perceived earnings leverage to Fe spot price - same as FMG, AGO, MGX - and will be perceived as having a diluted product quality so more susceptible to discounting in times of weakness -and so be more volatile than to this point - where it was the 'defensive' iron ore pure play of choice because of high quality product, no further capex and high dividend ratio.

its the right move for the company but a bad move for existing share holders who bought in above $2.50.

if I liked the expanded case id sell into the traders - who will probably prop price up in hope of a competing offer - and buy back once the stock bottoms.

unless of course another bidder does emerge - but thats just a bet.