BEST OF THE BROKERS August 26, 2010 BHP BILLITON The mining group’s results were largely in line, said Citigroup, with iron ore revenue delivering a surprising jump to $6bn. The broker maintained its “buy” rating with a target price of £27.00. BHP’s recent economic commentary has been cautious, though Citi conceded that investors were likely to focus on its bid for Potash [...]
FTSE begins to recoup losses as miners and banks advance August 26, 2010 BRITAIN’S top share index rose yesterday, boosted by a rebound in commodity stocks and helped by better-than-expected economic data from the US. The FTSE 100 closed up 46.44 points, or 0.9 per cent, at 5,155.84, as London’s blue chips rallied from a seven-week closing low on Wednesday. Weekly jobless claims in the United States declined [...]
SANTANDER SUSPENDS TOP ANALYST August 25, 2010 US authorities will step up their investigation into insider trading at Banco Santander today as the scandal threatens to engulf BHP Billiton’s $39bn (£25bn) bid for PotashCorp. The Securities and Exchange Commission (SEC) has secured powers to seize documents, emails and phone logs from Santander’s Madrid office after charging senior executive Juan José Fernández García [...]
Kloppers won’t fall into the bid trap August 25, 2010 BHP chief executive Marius Kloppers was determined yesterday to play down fears that he is about to over-pay for PotashCorp, the Canadian fertiliser group. As Kloppers unveiled healthy annual results, most people’s minds were focused on what he had to say about the group’s pursuit of Potash, for which he has made a $39bn bid. [...]
BHP Billiton stands firm on Potash bid August 25, 2010 INDUSTRIAL giant BHP Billiton posted bumper profits in nearly all areas of its business yesterday, as chief executive Marius Kloppers remained confident over the firm’s $40bn (£25.9m) offer for Canadian fertiliser group Potash. “I have heard all the speculation, but I have only seen one bid on the table. Given the all-cash nature of what [...]
Getting a grip on listed products August 25, 2010 TOO much choice can be a problem for investors these days. Online consumer champion Which? singled out structured products as being some of the most confusing instruments on offer and was particularly unhappy about their lack of transparency, particularly when it comes to counterparty risk. The UK Structured Products Association hit back at the research [...]
FTSE hits seven-week closing low as fears over recovery’s strength intensify August 25, 2010 BRITAIN’S top share index fell to a seven-week closing low yesterday on growing unease that the global economy may slip back into another recession following further weak economic data from the United States. New orders for long-lasting US made goods rose far less than expected in July and, excluding transportation equipment, posted their largest decline [...]
BHP bid to hit investor vote hurdle August 24, 2010 BHP BILLITON will be forced to put its hostile bid for PotashCorp to a shareholder vote if it increases its original $40bn (£25.5bn) offer in order to win over the Canadian company’s investors. According to Financial Services Authority rules, BHP will have to put its proposed takeover of PotashCorp in the hands of its own [...]
Banks and miners suffer after MPC’s Weale warns of fresh dip August 24, 2010 BRITAIN’S top share index closed lower yesterday after weak US existing home sales data cast further doubt on the economic recovery story, with UK banks, miners and energy stocks bearing the brunt of the sell-off. The FTSE 100 ended down 78.89 points, or 1.5 per cent, at 5,155.95, its lowest close since 20 July, having [...]
Strong profits set to boost BHP’s bid case August 24, 2010 MINER BHP Billiton is today expected to reveal robust full-year earnings, strengthening its case as it embarks upon a charm offensive across the globe to try and convince investors of the merits of its $39bn (£25.2bn) hostile bid for Canada’s PotashCorp. Analysts expect BHP to deliver underlying earnings before interest and tax (Ebit) of $20.1bn, [...]