RE: BAD Deal All Aroundthis deal stinks to high heaven for existing CMF shareholders....and the Analyst at TD thinks we should all vote against it.....I'm inclined to agree.
.....TD Newcrest analyst Daniel Earle is disappointed with Agnico-Eagle Mines Ltd.'s friendly $762-million all-stock bid for Comaplex Minerals Corp. The implied valuation of $10.32 a share for Comaplex is significantly below his 12-month price target of $11.50 a share.
To make his point that the offer may be too low, he pointed to Agnico's 2007 acquisition of Cumberland Resources Inc., which gave it a gold project in Nunavut that is close to Comaplex's Meliadine deposit. The Cumberland transaction implies a comparable takeover price for Comaplex of $16.30 a share, Mr. Earle wrote in a note to clients.....
"We therefore advise shareholders to reject this offer," he wrote.
He suggested that Agnico could pay more than $18.00 a share and still make this transaction accretive. The question, of course, is whether it will be forced to do that. Mr. Earle said there is a roughly 50-50 chance that a competing bid will be made by a rival company.
https://network.nationalpost.com/NP/blogs/tradingdesk/archive/2010/04/05/agnico-bid-for-comaplex-could-be-higher.aspx