RE:RE:RE:RE:Takeover PredictionNow everybody knows Lundin wants to buy Nevsun but they do not want (or cannot) to keep Bisha. If you factor in the sale of the Bisha mine, the $166 million cash, the actual price for the Timok project is much less than the suggested acquisition price of US$3.50 (C$4.50).
But the thing is, why would Nevsun sell?? at close to the same price or less than they acquired the Timok project?? .. afterall they invested many million $ into developing the project in the last twelve months.
At a minimum, Lundin should pay the price Nevsun paid for Timok project plus the investment $ already spent in developing Timok, and the Bisha mine and reserve. Then add a healthy premium, not a discount (disguised as a low premium) as Katusa suggested.
If there is an acquisition, the deal should be structured so the proceed from the sale of the Bisha mine is distributed to the shareholders and not to Lundin. I hope the poison pill that Nevsun has in regard to acquisition is set up to do this.
As a reminder, Reservoir Minerals had a lot of foresight to have set up the first right of refusal agreement with Freeport a year or more before the actual sale. And it was because of the management's foresight that their shareholders benefited greatly when the sale did happen.
I for one will sell at the right price and will vote accordingly. And the right price is not US$3.50.