Apart from a significant premium being offered for DOM shares,...

Apart from a significant premium being offered for DOM shares, KCN is a growing, very low cost gold producer. To me as a KCN shareholder the real issue is what's in it for KCN as I can easily see substantial benefits for comparatively high cost gold producer DOM and their shareholders getting a significant interest in KCN's low cost gold production plus millions of ounces of gold plus massive blue sky exploration upside.

If this takeover turns out to be good for KCN, then it will also be very good for current DOM shareholders imo.

Here is a post I made in a KCN thread.

A look at a chart shows DOM's substantial underperformance against the Gold Index and gold since hitting $6.79 in October 2007 when the gold price was well under US$1000.

KCN have obviously done their due diligence and obviously see value in this takeover for KCN shareholders, and obviously see substantial upside which they believe they can achieve from DOM's mining operations plus gold discovery prospects.

Gavin Thomas, KCN's Managing Director and Chief Executive Officer holds 2.4 million shares directly in his name plus more than 700,000 shares indirectly (eg. super fund.) Every dollar KCN loses costs him more than $3 million.

So I think it's pretty fair to suggest, with his very direct personal financial involvement, he wouldn't be interested in the slightest in this merger if he thought it would be bad for KCN's share price.