RE:RealityI think you need a reality check.
40+% drop in share price since acquisition announcement tells you what the markets think of the deal. Cancellation of the private placement didn't even help the stock price recover any. It is currently trading near its 52-week low.
Lower than expected 2015 Q1 production results. GEOs drop 32%. 3 brokerage downgrades since announcement. Things are just looking rosy moving forward.........NOT.
There is still a need for financing and a private placement at this level will only put additional downward pressure on the stock price and add more dilution.
Takeover target ? Maybe, but what premium will they put on the current share price ? Will it even bring the price back to the pre-takeover announcement share price....probably not.
Absolutely right move...........NOT. Kudos for erasing 40% of share value in 2 months.........NOT.
Investors don't care about TMM's balance sheet, they care about the share price. Rationalize it all you want but a deal that was promoted as being accretive is not currently looking that way.