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Clearbridge MLP and Midstream Fund Inc V.CEM


Primary Symbol: CEM

ClearBridge MLP and Midstream Fund Inc. (the Fund) is a non-diversified, closed-end management investment company. The Fund's investment objective is to provide a high level of total return with an emphasis on cash distributions. The Fund seeks to achieve its objective by investing primarily in energy master limited partnerships (MLPs) and energy midstream entities. The Fund considers an entity to be within the energy sector if it derives at least 50% of its revenues from the business of exploring, developing, producing, gathering, fractionating, transporting, processing, storing, refining, distributing, mining or marketing natural gas, natural gas liquids (including propane), crude oil and refined petroleum products or coal. The Fund may also invest up to 20% of its managed assets in other securities that are not MLPs or midstream entities. The Fund's investment manager is Legg Mason Partners Fund Advisor, LLC and ClearBridge Investments, LLC is the Fund's sub adviser.


NYSE:CEM - Post by User

Post by CentaurusAon Apr 23, 2014 11:28am
153 Views
Post# 22481356

Let's make a deal!

Let's make a deal!Constantine is in a good position to deal on this new land acquisition, and Dowa would be wise to make a deal now since it is in their own best interests as I believe it is their intention to build a mining camp there. Since CEM could make a deal for work commitments and a significant cash infusion, then this would allow the company to move ahead with exploration on Croesus or any other property other than Palmer. Of course Dowa would be the best fit for this expanded Palmer project, but if the board of CEM determines that it needs money now to work on Ontario properties, then there is nothing to prevent them from entering into a deal with any prospective partner.

So, the market's reaction to this acquisition ought to heat up when a new deal is announced which may not take long at all. I beleive that there are multiple parties which will show an interest in talking to CEM management about making a deal. Provided that Dowa will make a fair offer, then CEM may grant them some exclusivity before entering into talks with any other bidders.
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