Commodity Grab

Posted by Bull Bear Trader | 4/10/2008 08:43:00 AM | , | 0 comments »

BHP Billiton shares were up after a report stated that China is planning to build a 9% stake in the company, in part to have a say regarding BHP's proposed takeover of Rio Tinto. It is believed that China fears the takeover will give BHP additional pricing power over key commodities that the country needs. Not sure what "have a say" implies as far as controlling commodity prices, other than an attempt to block any deal. Is this rumor, and does it have legs? Hard to see the impact on commodity prices.

Tickers, BHP, RTP

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