FYI-If you havn't seen this Don't know if you have seen this but this is reaction to the deal . Not bashing or promoting just passing on what i have come across in the media. Personally i would be happy to see a bidding war for TRR and it reaching closer to its past highs as i do own shares and feel that IMG has taken advantage of a very weak gold sector but you really can't blam them, anybody in buisiness is always looking for the best deals they can find.
Best,
HARJAY
UPDATE 3-Iamgold to buy Trelawney Mining for C$608 mln5:07PM ET on Friday Apr 27, 2012 by Thomson Reuters
MIXED REACTION
Bay Street's reaction to the deal was sharply divided with some analysts cheering the move and others criticizing Iamgold's choice of target.
"We think Trelawney is an excellent strategic fit in Iamgold's existing Canadian portfolio," wrote Bank of America Merrill Lynch analyst Michael Jalonen in a note to clients.
Some analysts backed this view, but others said that Iamgold could have bought something better.
"We believe this is a relatively low-quality project. In this environment, given their large cash position, we believe they were well positioned to acquire a high-quality project," said TD Securities analyst Steven Green.
"This is a large, low grade deposit which will likely be a large bulk tonnage operation with high capex and operating costs," Green said in a note to clients. "These are the sort of projects that have been struggling in the current environment due to cost inflation."
Shares of Iamgold closed 1.3 percent lower at C$12.26 on the Toronto Stock Exchange on Friday, while its U.S.-listed shares closed down less than a percent at $12.53. Trelawney shares closed 41 percent higher at C$3.27.
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