The deal Well I know it has been a few days now since AMW committed to FCU and accepted there offer but I wanted to give myself a few days to see if I'd warm to it.... I haven't, I don't like how this has played out too much...
I really didn't see why AMW would give up control and pretty much hand over there 50% of the deposit and allow themselves to be taken over by FCU... I mean there's nothing that FCU can do better that AMW cannot do themselves and I would imagine that FCU would still be just as big a part of the operation as they have been, in fact I'd think the exploration teams and methodology would not change at all, so it certainly would not hurt the drilling... In fact I think FCU had more to lose if they couldn't get this deal done.
A lot of members here on both FCUs and AMWs board seemed to think Dev was a little crazy going public with this and threatening to go hostile (based on the initial reactions of most of the posters here anyway)... But I guess ya gotta hand it to Dev in one way, he outmanoeuvred Ben and was able to manipulate the situation to FCUs benefit. I don't like or trust Dev too much, he rubs me the wrong way, just feels a little sleazy and seemed too smug and *****y in this takeout proposal of AMW, let alone how he's been trying to claim all credit for the PLS since pretty much day one. When he said it was the shareholders that wanted this, I thought that must be posturing, but in retrospect he must have there support, how else would AMW really be so willing to give up control? In fact I think the “premium” AMW got was only go on the condition that management support the proposal and don't make it difficult, also I would think that they realized that a perceived fight between the two would do too much damage to both stocks so better it's over with quickly.
The reason for the shareholders wanting a change, liquidity. I'll admit AMW could use a little more of that, a 2 or 3 to 1 split would have solved that, not the bloat that it's about to become. So this has more to do with getting the two companies together under one banner and those “shareholders” seem to prefer how Dev does business or more I'm thinking who is the more pliable of the two.. Gotta think that, for example, if you are Cameco would you rather be dealing with someone like Gunning who you have already lost to or Dev who seems like he could be bought or at least is seems more willing to play ball.. Dev has already been hinting he is willing to sell cheap if the right incentive comes along, 55% I think he said?
I'm not saying there are not benefits, the biggest being that PLS is unified now at least, also I liked the spin-out of non-core assets and this should tighten up the budget, but if this is sold cheap that won't matter mind you..
I'm curious about that 10 day exclusivity period, maybe those are standard in contracts like these and really I'm not expecting another offer considering AMW management has endorsed the deal but I do wonder as what is on the line here is control for the next 2 years and that is significant I think.. Could be too good an opportunity to pass up maybe? A lot can be done in that time frame and if Dev is already in bed with someone, this could be a rivals only chance to try and snatch it away... Also it 's very common in the Athabasca Basin for deposits to be joint owned, if it comes to that... Just thinking...
Even after this I'm still optimistic, just a little more cautiously... Not a fan of the deal but think I'll have to get use to being a larger FCU shareholder I guess and hoping I'm wrong about Dev..