EDV / AVR Update EDV shareholders are not to pleased with the AVR acquisition. They feel it entails too much risk and it is next to impossible to know what skeletons, if any, are in AVR's closet. Given AVR's spotty track record of disclosure or lack thereof, you must expect some surprises.
EDV shareholders are being asked to bet that :
- AVR assets are as advertised - big assumption given their track record of AVR mngt
- Mali - the situation remains fluid and the outcome uncertain - who will be governing the country?
- Mali - what will the new Gov't do to raise revenue ?
- EDV is getting a great deal if all the above work out.
Investors in AVR have got to come to grips with the fact that AVR mngt realized the desperate situation they were in and they have no other choices. There will be no competing bids for this risky asset purchase. As noted before, EDV is rescuing AVR shareholders in the hope that they can grab a cheap asset with offsetting risks associated.
Think that AVR was in good financial shape, then why did EDV advance them $20 M loan for the Tabakoto mill upgarde. You would think that the company would be able to do this themselves. What a big price to pay....just does not add up.
I would much rather have EDV mngt running the show than the AVR mngt group. Why would anyone invest in a company that has clouded views of appropriate disclosure. Then issues itself millions in stock just prior to a takeover bid. If you believe this was just a coincidence, then you really should question your investment IQ.