What is the bet?
On Aug 20th, BHP has announced to buyout Potash. This caused a decreased in the BHP share prices.
We will bet that the takeover won't happen between BHP and Potash Group. This will be a similar situation between BHP and RIO.
However, news regarding blocking the takeover is lacking compared to the incident before between BHP and RIO. Does this mean that it is more likely that BHP has the "permission" to takeover Potash.
To Profit: Bet BHP prices goes up due to the "takeover" failed.
Things to Watch:
The News - takeover failed
Support line - $38
Why?
China intervention. Are they powerful/influential enough to block the merger? more research needs to be done here.
To be continued...
Am I still missing something..
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