GREY:ICMTF - Post by User
Comment by
sccool50on Sep 10, 2012 5:53pm
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Post# 20344245
RE: 7% Discount
RE: 7% Discount IMHO, the stock is moving opposite gold as weak hands do not want to wait for deal to close in 4th qtr. If deal falls through ICI gets 7 million. Also if you are the takeover company then would you not want to buy the stock on the cheap? They need 66% of stock to complete deal and since the offer was announced we had 13,146,185 shares traded. They need approx. 77 million shares, so as it stands today volume is now picking up with the bid/ask ratio showing the stock is bottoming out and should start rising. We now have an arbitrage building with the 7% discount to offer so I expect new buyers to move in to get the premium discount that exists today.
Also this offer is just simply horrible timing, they are stealing the company at $2.05, so it's not out of the question of another offer to put on the table before the deal must close. Buying company has a five business day right in favor of Western Mining to match any superior proposal. GLTA