6 months ago GBG agreed to acquire SDL via a friendly merger. The merger valued SDL at $1.5bn - around 80cents. They shared lots of management connections and analysts savaged the company for well overvalueing SDL. SDL have a large exploration target in Africa. NOT yet a resource. Just a target. So paying $1.5bn for a target in Africa is a big call.
IMO, what was very bullish sentiment leading into the merger was eroded and it started a downward trajectory that has lasted until a week or so ago.
It has broken out to the upside though with the entire sector.
GBG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
