Just a thought, would BHP or RIO buy ALCOA again for $40bln?

Since BHP is bidding for POTASH, and it has sparked a bidding war joined by RIO and some china companies, will they bid for ALCOA too??

Alcoa is cheaply valued, counting that it is going to be the cheapest run aluminum plant soon, this is a steal for RIO who wants to become the dominant leader in Aluminum and alumina.

Currently, market cap of Alcoa is only $10bln. The previous bidding war for Alcoa priced it near $30 something billion.

Now, they can get Alcoa which is a better company for only $20bln perhaps.

So it is dangerous to short Alcoa.. This could be a good buy… if we suspect any bid soon. It could rise to $14 just on any bid offer.

Long Alcoa at $10