Incitec Pivot Ltd T.IPL

Offer

[marketsense]

When someone makes a cash offer,  no matter who it is and where it comes from,  it shows
2 things.  The offering entity perceives that IPL has great value meaning currently undervalued
and is a very attractive asset in the space to acquire.   That kind of expression of interest
doesn't show up out of nowhere.   Some entity has been watching and waiting for an opportune
time to come forward before the fundamentals propell IPL higher.  This is a very intriguing
and admittedly speculative developement that has caught the market offguard.

Let's not forget,  prior to this news including the European asset sale decision,  IPL was 
languishing around $20 with the street concluding that it was overhung with debt vis a vie
the Hearland proj. and therefore was discounted heavily for the time being.  Suddenly that
view is all changed.   That's what is significant about these developements.  Now what 
happens next to the offer that was soundly rejected is anybody's guess but IMO the game
has changed from one of boring and waiting to one of heightened interest and speculation.
I think that will keep the sp from dropping back to the lows where it was trading so it is a net
positive at the end of the day.   IPL as others have said could be in play with other big names
being attracted to it as well.   The Heartland proj represents diversification and therefore is
attractive to other big players who like that aspect.  Better to buy in now before the market 
satrts to rerate IPL.