RE: RE: the buyout price is a tragedy
Friendly Deal for whom?
Some controversy on the latest friendly deal for Prodigy by Argonaut.
“In describing the background to the friendly takeover, Prodigy's Maher said Argonaut emerged as a "preferred partner" and that the premium built into the offer "puts this deal in a very competitive light in the current M&A (mergers and acquisitions) environment."
But were there other offers and was Argonaut's the best? inquired one analyst at the outset of the question period during the conference call. Maher declined to answer whether there were other offers, but he did say there had been interest from other parties and that Prodigy had signed confidentiality agreements with some.
Maher said Prodigy had brought on board National Bank to advise it in dealing with interested parties, but that "the idea was not to run a bidding war." Rather, he said Prodigy's plan had been to build Magino, but in dealing with Argonaut Gold it became clear "to both groups this combination would make a lot of sense." Argonaut's due diligence on the project began 10 months ago according to a combined corporate presentation about the deal.”
Full story;
https://mineweb.com/mineweb/view/mineweb/en/page66?oid=160239&sn=Detail&pid=107187
Seems to me it’s the Board’s responsibility to get the best price for shareholders, if that entails a bidding war, so be it!
Cheers, Mark (for a comparable investment,D/D Probe Mines V.PRB, Main Asset Borden Lake- 5.8 Moz AU, secondary Black Creek 10 MT's Chromite(Ring of Fire) and 5% Royalty on Agnico Eagles Goldex Mine, $100M MCap, 65M o/s shares, $27M Cash)
https://www.probemines.com/s/Home.asp