RE:Buyout Price Estimate I think a buyout price of 10b is next to impossible unless gold soars over $3,000 somehow. From what I have read on here and a few other places a price of 3-5 billion seems more plausible IF we can get a buyer. There have been comments referencing that LME majority holders only want a cash deal, no stock shares in the company aqcuiring lme. I think this can definitely hinder the outlook on a buyout. Not trying to be pessismistic, to be clear, I am up to my ears in shares but the majority of these kinds of buyouts at this level are not cash deals and i would hate to see us lose out on a buyout because it wasnt 100% cash deal. There are very few players with that kind of cash available, and the buyers with that kind of cash get their pick of the litter so LME really needs to shine.
anyways back to the 3-5 billion numbers. There will be a break up fee, i think on one of Rogers posts he threw the 300 million number out there. Working off that we have:
$3,000,000,000-$300,000,000=$2,700,000,000/256,810,000(shares outstanding)= $10.51/share
$5,000,000,000-$300,000,000=$4,700,000,000/256,810,000(shares outstanding)= $18.30/share
there are alot of factors that are unknown such as how many GEOs LME has, the price per GEO we actually recieve among other things so really these numbers are based on speculation. If anyone really knew the stock price would most likely paint a different picture than it is now.