The Chinese wanted Cardinal, so Nordgold kept matching the bids (similar to PRU simply telling everyone they will continue to vote against the takeover), until the Shandong bid got so high that Nordgold folded and simply made $200 million in profit and took the easy cash - it was money for nothing really. Easy money for Nordgold, and potentially easy money for PRU, depending on how bad Silvercorp want ORR.
Shandong had to eventually double their initial bid, forced up by Nordgold.
If the same takes place here, Silvercorp may have to offer 30 cents a share, or more, and an increased ratio of shares, before PRU fold and simply take the easy money - money for nothing.
PRU seem to have very little to lose, and potentially a lot to gain, in cash and Silvercorp shares, or in acquiring the gold project.
Silvercorp are a Chinese company, so let's see if their want is similar to what Shandong's was.
This is fun.
Gw
ORR Price at posting:
50.0¢ Sentiment: None Disclosure: Held
