McArthur Shows His ColoursHe said not a penny more and now he offers 52 more of them; or more accurately .03 shares more. This illustrates the pathetic financial condition of Glamis and the complete lack of honesty of McArthur.
I believe that he believes he is losing the battle (what other conclusion could one draw?) and this is all that the board or financial advisors say he can afford in terms of increasing the offer. Alternatively, this is a guy that really does think in pennies.
In any case, Glamis only has something like $25million in working capital and this is rapidly being drained away developing mines which are marginal compared to g/WRM. He needs our $500 million or he faces dilution from increased equity issue. No wonder he does not mind dilution effects of goodwill on his balance sheet; he will get it one way or the other.......or would he hedge as Glamis` charter allows? You know what they say about doing something lying lying once....then you are a ???????.
Once Glamis becomes a hedger, their premium to gold is sold :, dilution and therefore premium will begin to go down. No wonder Fidelity wants Glamis deal to go thru to save their bacon.