RE:Only $450 million break feetempletooth2 wrote:
That works out to only $1.70 per share.
The parties are being overly generous in setting such a low hurdle! I'm sure all you holders who think this is worth north of 60 will be vindicated within hours as every other miner on the planet lines up to outbid these Agnico Amateurs.
With AEM not holding any current Australian properties as far as I know. Newcrest could indeed go joint venture with Barrick especially (scince Barrick expressed interest in growing in Canada) .
The current offer values KL close to $11B US.
I think the wheeling and dealing is along ways from over.
Fosterville would be a jewel for Newcrest to complement its current operations, a joint offer at say $12.5B US to $15B US with Newcrest then taking up the Australian assets makes far more sense.
I will definitely be voting no unless we get a better offer than this.
I think it should be going close to $75 CAD not close to $50 CAD.
At $15B US valuation that approaches a CAD price nearing $70.
The top 6 institutional owners have about 25% of the outstanding shares I'd be surprised if they went along with this deal . If they had wanted AEM shares they could have bought them instead for close to the same price. What are the advantages that AEM brings that would cause the combined company to get a bigger valuation ? Other than size I see little . KL already has plenty of capital to fund expansion and operates at a considerably lower AISC than AEM.
Failing a counter offer.
The big question really is can the KL actually convince enough people to accept this deal.I hope that is unlikely.
Barrick Newmont, and Newcrest and maybe others are probably salivating at the thought of acquiring KL now and thanking KL/AEM boards for starting the bidding so low.