takeover, page-2

Hi smy:

I think the MMW hostile takeover did put extra downward pressure on PAN. However, several factors have suppressed PAN's price:

1. The markets are risk averse right now to anything except defensives and absolutely allergic to resources stocks.

2. Nickel prices are depressed (around $7.60s) whereas guidance assumptions are likely a dollar higher. (PAN does have some hedging at good prices by comparison, but only for a small portion of sales).

3. Foreign investors scurried away from OZ stocks as the dollar fell. One report today suggests they may flow back in quickly now that the dollar has hit parity (a possibly resistance point).

4. MMW and PAN's gold/platinum assets are at exploration/development stage, which results in more stock price volatility than if the assets are generating reliable revenue and profits.

So, ultimately, we'll see if the MMW acquisition boosts PAN's price. I think it will (a bit), and definitely hope so.