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First Uranium Corporation T.FIU



TSX:FIU - Post by User

Post by uranicynicon Mar 24, 2012 10:43am
260 Views
Post# 19713295

Why not a buyout?

Why not a buyout?

I don't understand why AngloGold doesn't just buy FIU completely, debt and all. Even if they doubled the SP and paid .30/share it would still be only 70m. They could then payoff the 150m debentures avoiding dilution, spruce up EZ for sale at a much better price and pay off next year's debt with the proceeds. It would seem they could get this all done for less than their derisory offer of 335m for MWS. 

   70m (offer) + 150m (2012 debt)  + 175m (2013 debt) -150m (fair value EZ sale price) = 245m.

245 million (includes 175m debt due in March 2013). MWS continues to generate cash at the current pace or better.  What am I missing? Obviously .30/share would still be considered robbery by most of us but I'm just throwing that number out there. If it was .60/share or .90 or more it's probably still good value and they know it.

The current strategy seems needlessy complicated and sure to lead to lawsuits.

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