AJC aquisitionThese talk " its bad...will not happen...balblabla" i have heard many times on other BBs.
Of course it is possible, that the deal falls apart, its just VERY unlikely.
The management& board backs this + you can be certain they talked to their major shareholders before to make certain they would also back this aquisition.
The simple fact is that you cannot easily take someone over. A hostile bid can be VERY expensive.
So it does make a lot of sense to do a friendly aquisition where you know the assets and the team.
SAM is paying 6,5$/oz indicated (NI-43 101 compl) in one of the best mining jur. in the world.
As far as i am concerned i think at least the Toiyabe has good upside and is certainly worth the price.
Especially as its only 4% in stock.
Generally its is typical in such all-share-deals, that the aquisition target trades at a discount to the exchange ratio. it happened recently with Manadley - Elgin or SND - SAND...
...just that in AJC s case the discount is very high relative to a resonable risk adjustment of the deal not happening.
chrs
teatime