RE:RE:RE:RE:RE:RE:RE:RE:COMPETING offers??Funex4t wrote: If Barrick takes out AR with higher bid. Would that put AGI in a weaker position and possibly drop their share price?
Without the AR deal, Barrick can take out AGI at a weakened price!
let's go!!
Anything is possible. So many here seem to think this is a done deal and no one else can make an offer. Did anyone predict this offer by Alamos? One day we woke up checked on are stock holdings and saw this offer. Same thing can happen anytime in the next couple months before the vote.
Alamos is paying aprox. $550 million Cdn. For Magino. They are expecting synergy savings using the new Magino mill etc. of aprox. $515 million US or aprox. $700 million Cdn. by buying Magino. The savings alone more than pay for buying Magino. The 250 thousand ounces produced per year by Magino for the next 20 plus years are just a bonus.
Alamos knows what they have here despite what some fools on this board think. At the offer price of this deal they have basically a FREE 250 thousand ounce 20 plus year producer with a brand new mill that will help them save a bundle of their own costs.
Other mining companies can crunch the numbers as well and i would not be surprised to see some other offer one of these days. If that were to happen and we get into a bidding war Alamos would likely be willing to increase their offer by quite a bit likely more than others as Magino will fit them perfectly because they are right next door. Of course Alamos started with a very low bid. They are hoping to steal Magino and if nobody else offers more it means that market has spoken and that is all AR is worth.
Lets hope that someone comes along as is very possible and makes a better offer and then Alamos ups their bid. Lets make those vultures pay a bit for Magino. Even just the cost of buying the property and building Magino minus the debt would be around $1.30 for each AR share.
To be honest just to end this tortured saga i would be happy with even half of that.