You might, or might not, have seen this story doing the rounds, that BHP Billiton are looking at Woodside Petroleum. Apparently. As a business that would obviously compliment their oil and gas business, which makes up around one quarter of group profits. As far as I can understand it, the Australian Stock Exchange have even asked the fellows over at Woodside to explain the surge in their share price since the ides of March, when the rumour first surfaced. I suppose if I was the board, I would say, "guys, have you noticed the oil price has ticked up sharply?" That would be my answer to the ASX.
But I guess the concerns that the ASX have is valid, there have been a few brokerage reports suggesting that this would be a good fit for BHP Billiton and make no mistake, Woodside Petroleum is HUGE, a premium over the existing share price (which is up over 11 percent in one month) would put the deal at the same size as the failed recent Potash bid. I don't know if this is going to happen, the deal seems a made up one from the Aussie Securities firm Southern Cross Equities. I can spot the star constellation, but this one seems to be written alongside the horoscope nonsense.