If the AEM-KL merger had truly been a merger of equalsThe price of the shares should have been based on the multiples. Since AEM is trading at 16.1X earnings, then the KL shares should have been valued similarly. Given that KL earnings are 3.93/sh versus AEM 3.91/share, at the very least the share exchange should have been 1:1, valuing the KL shares at $63.
Unfortunately, this deal smells and reflects badly on the KL leadership and board of directors.