BHP Billiton Purchase Price to Rio Tinto Rose to 3.5:1

Latest news said that, analysts said that BHP Billiton Purchase Price to Rio Tinto Rose to 3.5:1. BHP’s quote is 28% higher than Rio’s average aluminum price in October, but it is lower than the price Rio to Alcan. Investec estimated that if this exchange goes well, the premium will between 30%—40%. That including a 30 billion dollars buyback project one year after unit. That means that the exchange rate will be 3.5:1—3.7:1. Investec said if they two united, the saved cost will be more than Bio’s expect. Bio has estimated they will save 1.7 billion each year in the first three years after their combination.