Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

WestFire Energy Ltd T.WFE



TSX:WFE - Post by User

Comment by nonvoyanon Oct 05, 2012 7:52pm
174 Views
Post# 20455108

RE: RE: RE: RE: RE: also voted today

RE: RE: RE: RE: RE: also voted today

"....but WFE buying GO at rock bottom prices, paying in WFE paper, and upgrading the management team, looks intreging. "

It's a reverse takeover.  GO is buying WFE buy having WFE buy GO.   In other words, in a normal takeover, GO pays a premium for WFE shares.   However in this case WFE is paying a premium for GO shares and WFE's management is fired while GO's management is retained. 

 

In other words, GO shareholders buy a company with twice the market cap, (WFE: 336m, GO: 179m) for a discount because WFE is paying a premium for GO shares even though GO management takes over WFE.

In what market does a smaller cap company get to take over a larger cap company at a discount, unless WFE was overvalued by the market?    In the real world, any takeover comes at a premium, not a discount.   Unless perhaps you're taking over a sinking ship.

<< Previous
Bullboard Posts
Next >>