Petrominerales Ltd PMGLF

RE:RE:The rumour mill is starting up...

[pokerbeeks]

The purchase does make a lot of sense for PRE, but I can't see PMG's directors being happy with $8.  Last year they blew about $150 million on buybacks that averaged well over 10$.  That's a tough pill to swallow at an 8$ price.

Secondly the biggest part of this acquisition would be the bonds/liabilities anyways.  They are assuming around $1 billion in liabilites with a takeover while the equity is just over $500 million now.  boosting the equity price to close to $1 billion would really only increase the overall price by about 30% and might actually be tolerable for PMG's management.