RE:If the AEM-KL merger had truly been a merger of equalsAEM has always been well-run, and has commanded a premium valuation, but it also operates in high cost environments, hence higher AISC. One problem in one of their arctic mines and poof, you know what happens. Perhaps, if this "deal" goes through, it will knock AEM off its valuation pedestal.
johnathamilton wrote: The 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.