BHP bid for POT is facing provincial government's opposition and the final federal government's decision is on Nov. 4. The concern is a 10 year tax revenue loss of 3 billion dollar for the provincial government. I do not believe that 3 billion dollars will be a big obstacle for
BHP, considering the deal size (around 45 billion at the end). The most important
issue is still the takeout price. I do think that
BHP does not want to go beyond $155. If POT is not satisfied with that price then the deal may fail.
No comments:
Post a Comment