RE: Support Silverstone management...by voting no!tooclassy, I was thinking the same thing. Management is focused more on CS, at least now, and want to get more liquidity in their silver (SST-SLW) holdings so they can sell it if and when they need the money for their next CS venture.
This was the best agreement they could come to with SLW without bogging down in negotiations. Another way to look at it would be them trying to optimize timing and returns.
Of course they can't say "This was the best ratio we could come up with and still get the deal done in a reasonable amount of time, but could you remaining shareholders all vote no so we can go back and squeeze a few more points out of SLW, and when they come back with a better offer, please quickly approve it?" But they might be thinking that.
If they have enough time for the offer to be rejected once, then a new offer made and accepted, and still sell enough SST-SLW to do whatever CS thing it is they want to do with the money, they would be happy to see this happen.
If there is not enough time, then they would rather take the shares and run at the currently offered ratio (and then promptly convert the shares to money when needed.)
If this is the case, the big question is, what is their drop dead date for the deal to be done? This answer to this question is tied, of course, to other things, like how quickly the prices of various metals rise (or drop), how quickly the prices of juniors (like SST) rise (or drop), how quickly the prices of intermediates and seniors (like SLW) rise (or drop), the relative rates of those rises (or drops), and the relative timing of the continuation or beginning of those rises (or drops.) Throw in price guarantees ($3.95 an ounce purchase price for silver) and hedging. Lock several smart management types in a room with all the beer and pizza they need until they come up with the most likely scenarios, and out pops your answer.
Holy cow, I think I just made that sound more complicated than it really is, but maybe that’s what management did (metaphorically) in coming up working out this deal. At least I hope it was more than just “Hey, John, whadya think?” “I dunno Darren, whadyou think?” “I dunno – Sarah, come over here. Whadya think about…”
HC