Seeking Alpha

Offer for Allied Nevada was fake

  • "Together with its advisors, Allied Nevada (ANV) has not been able to find any substantive published information on China Gold Stone and cannot substantiate the credibility of the proposal," says the company, responding to this morning's $7.50 per share takeover offer. And then there's this from China Gold Stone ...
  • "China Gold Stone Mining Development Limited announced that the press release issued by it earlier today regarding a bid for Allied Nevada Gold Corp. was issued in error and without the advice of counsel. The earlier release has been retracted."
  • ANV has yet to open for trade in the regular session, but a fair number went through in premarket at as high as $6.55 each vs. yesterday's $4.31 close.
Comments (17)
  • grf75ar
    , contributor
    Comments (19) | Send Message
    Holy $hit! How is this possible?
    14 Jan, 01:10 PM Reply Like
  • Value Mine
    , contributor
    Comments (201) | Send Message
    14 Jan, 01:16 PM Reply Like
  • gsterling
    , contributor
    Comments (674) | Send Message
    Nothing suspicious here, move along!
    14 Jan, 01:19 PM Reply Like
  • IPOChaser
    , contributor
    Comments (55) | Send Message
    Was there any major volume reacting to the offer (representing institutional investing) or was it all retail?
    14 Jan, 01:21 PM Reply Like
  • mister-ugly
    , contributor
    Comments (183) | Send Message
    Cannot re-act to anything like this from lawless China. Fact is it was "Pie in Sky," another gold story. Good that the markets shut down trading ASAP.
    14 Jan, 01:22 PM Reply Like
  • Value Mine
    , contributor
    Comments (201) | Send Message
    Is this why GLD took such a tumble?
    14 Jan, 01:24 PM Reply Like
  • Bill Maurer
    , contributor
    Comments (5017) | Send Message
    Looks like it is open now around $4.81.
    14 Jan, 01:36 PM Reply Like
  • mikeginn
    , contributor
    Comments (117) | Send Message
    Oh, I guess I should have had our $1B dollar takeover offer reviewed by our legal counsel. It must be more complicated in the US.
    14 Jan, 02:06 PM Reply Like
  • pilot fish
    , contributor
    Comments (115) | Send Message
    I somewhat wonder if the offer was actually intended to be genuine, but the proper process had not been followed and hence the pull out. We haven't heard the last of this one that's for sure...personally I believe the price was almost laughable. I've made money off ANV, but a lot of retail investors are still in the red at $7.50.
    14 Jan, 02:49 PM Reply Like
  • kengps
    , contributor
    Comments (8) | Send Message
    Still, over 4 million shares traded pre-market this morning. oops!
    14 Jan, 02:08 PM Reply Like
  • takeandrun
    , contributor
    Comments (3) | Send Message
    won't they be back with a proper offer ?
    14 Jan, 02:09 PM Reply Like
  • Omer Altay
    , contributor
    Comments (414) | Send Message
    I Called CB Capital on the # on the original press release. I Was told the Press release was indeed legitimate and that they would release something more soon. That's all he told me. I gave him my name, number, and email.
    14 Jan, 02:42 PM Reply Like
  • Rainbow Investments
    , contributor
    Comments (17) | Send Message
    Look at it as a wake up call. We might see some serious moves in the near future with this kind of media attention and visibility.
    14 Jan, 03:37 PM Reply Like
  • darmbru2
    , contributor
    Comments (2) | Send Message
    I don't believe that there is any suggestion of fraud... It may have been premature, but the prima facie evidence suggests that they do intend to try to buy the company: (1) extremely low price to acquire mine (2) the confirmation from CB Capital as well as the semantics used in their letter and follow up email (3) the company had been on a recent rise suggesting that the they went against their legal counsel and issued the offer early before it could go up any higher in value...
    14 Jan, 03:47 PM Reply Like
  • User 18179332
    , contributor
    Comment (1) | Send Message
    I bet this is a genuine offer, but just did not follow the proper procedure. The Chinese company worth 15 B, so they certainly can bid, and ANV hugely undervalued stock. still traded over 12 mil in 3 hrs, there most be something, or filling the short positions.
    14 Jan, 04:32 PM Reply Like
  • ystock15
    , contributor
    Comments (169) | Send Message
    I had this stock about 2 months ago, made few profits, wasn't too bad. Glad I got out
    14 Jan, 05:40 PM Reply Like
  • Valueplay98
    , contributor
    Comments (584) | Send Message
    I knew there was something wrong when the tender was only dated 10 days away.


    It'll be interesting to see if something comes of this "offer".
    14 Jan, 08:33 PM Reply Like
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