You cannot judge the content of a book by its cover; this would be the saying that aptly describes the present position and possible destination of BHP Billiton (BHP). The reason for this observation is that it is somewhat hard to state right now if BHP Billiton would rise or fall given the mixed nature of the occurrences surrounding its stock.
For instance, it was reported not so long ago that BHP had plans to sell some of its assets (the Ekati diamond mine to be precise) in a bid to raise more money and increase dividends for shareholders. It was also reported that a little more than a half of its Chidliak diamonds exploration project in Baffin Island in Canada were to be sold to Peregrine Diamonds.
However, it may interest you to know that De Beers, the world’s largest diamond miner, has rendered all speculations that it might be interested in BHP useless. News has it that De Beers was linked to the purchase of an 80% stake in the said diamond mine. However, it is now being reported that De Beers has backed out away from making any such offers even though it once entered the auction. In essence, the mere fact that a big player in the diamond industry such as De Beers is not interested may be an indication that BHP may be forced to hold onto the Ekati diamond mine at least until it gets a reasonable offer.To continue reading, click here.