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Coeur d'Alene Mines (CDE) proposes to buy Orko Silver (OKOFF.PK) for ~C$384M, two months after...

Coeur d'Alene Mines (CDE) proposes to buy Orko Silver (OKOFF.PK) for ~C$384M, two months after Orko agreed to be sold to First Majestic Silver (AG). Orko's board says CDE's stock and cash offer is superior, and gives AG until Feb. 19 to match it. At the heart of the battle for Orko is the La Preciosa deposit in Mexico, one of the world's largest undeveloped silver projects. CDE -6% premarket.
Comments (2)
  • Trappist1
    , contributor
    Comments (22) | Send Message
     
    The CDE cash offer looks highly conditional and probably will fall back on the 0.0815 CDE share per OK share + $0.70 cash. This option looks very vulnerable to a price decrease of the CDE stock and it is not a done deal.

     

    At the closing prices pre-announcement, FR can match the CDE offer by adding 45cent per OK share to its current offer (0.1201 FR share for each OK share). This would cost FR around $63mio in cash. With $70mio at the bank at the end of 2013 Q3 and a good positive cash flow, this looks manageble for FR.

     

    Adding to the cash component, FR will outbeat CDE

     

    For OK shareholders FR is way much preferred than CDE on fundamentals and prospects

     

    disclore: Long FR
    13 Feb 2013, 10:37 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5356) | Send Message
     
    "(CDE) -6% premarket."

     

    (AG) up 6%
    13 Feb 2013, 01:14 PM Reply Like
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