Potential Private-Equity Bid for BHP Billiton

In 2005, when I constructed the Big-Build Out (BBO) portfolio I imagined that there would be turn-over due to mergers and acquisitions.  However, never in my wildest dreams did I envision the world’s largest mining company, BHP Billiton, as a target.  Acquirer yes.  Target no way! That just demonstrates how much money is sloshing around looking for a home.

If you are not familiar with theory behind the BBO take look at its backgrounder.  The portfolio is up over 25% year to date.

Here is the current BBO roster:

  • Alcan (AL)
  • BHP Billiton (BHP)
  • Bucyrus International (BUCY)
  • Caterpillar (CAT) 
  • Chicago Bridge and Iron Company (CBI)  *
  • Companhia Vale Do Rio Doce (RIO) 
  • Freeport-McMoran (FCX)
  • Lundin Mining (LMC) 
  • Southern Copper (PCU)
  • Rio Tinto (RTP)
  • Teck Cominco (TCK)
  • Terex Corp (TEX). 

* Chicago Bridge and Iron Company replaced Phelps-Dodge on March 30th upon completion of FCX / PD merger; discussed here.

Merrill Lynch suggests private-equity BHP bid

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