MAG Silver Spikes After Takeover Bid

MAG Silver Corp. (MVG) jumped 13% on Tuesday morning after receiving a takeover bid from Fresbal Investments Ltd., a subsidiary of Fresnillo plc (FNLF.PK), who currently owns about 20% of MAG.

The stock was up C$0.66 to C$5.62 approaching the noon hour in Toronto, which is just about even with Fresbal's $4.54 per share offer when the exchange is considered.

Raymond James analyst Bart Jaworski called the Fresnillo bid opportunistic, saying it "significantly undervalues" MAG.

"We encourage long-term investors to reject the offer and buy shares of MAG-TSX on budding buy-out potential and exploration upside at Juanicipio and Cinco de Mayo," he said in note.

Comments

[silverwood:]

Anyone who has been in Mag tthe past year or so has watched the share price grind lower and lower for no fundamental reasons. IMO, prices have been pushed down so this stink bid would be offered. The timing is impeccible. Silver takes the biggest dive on the Crimex, naked short seller marauders stalk the Canadian miners, and now someone wants to steal Mag away from investors like me. The stock price should be in the $20 neighborhood not $4.54. I say you know where you can put you $4.54 offer?

2008 Dec 02 08:33 PM

[Littlegrey:]

I'm a novice to the PM miner companies and thought a company with interests purely within the borders of the U.S. would be the the way to go (like Hecla). Then I read a well authored article about how the NAFTA agreement (which I find deplorable for our country) allows gracious rights to foreign investors of mining operations within Central America, notably, Mexico. Perhaps this is one angle to get a small investor's edge on the huge powers that will not listen to it's own population after they get voted into office. Use NAFTA to your own advantage financially, but also act on the behalf of our American sovereignty when possible. New concept to Americans, but a very "Old School" cultural strategy in Europe.

2008 Dec 03 02:00 AM

[Natalie Le:]

Go buy Superfund gold funds. They're up 17-20% ONLY IN NOVEMBER. Their other funds are up 33-70% YTD.
The MD said gold is gonna double to $2000 coz of hyperinflation.
www.youtube.com/watch?...

2008 Dec 03 02:56 AM