this smells of a takeover, page-2

This is the article (link) just in case you cannot read the full article:

No takeover gold yet for Ampella Mining

by: Robb M. Stewart
From: The Wall Street Journal
June 18, 20122:30PM

SHARE prices for gold companies have for some time underperformed the spot price for the precious metal, giving rise to expectations of deal making, particularly among smaller companies sitting on promising assets but often without the necessary funding to develop them.

But with capital markets in turmoil and equity valuations lagging, any hopes of an impending consolidation spree may be overly ambitious.

Despite apparently strong interest in Ampella Mining, the emerging Australian gold company has closed the door on a takeover after failing to attract an offer it felt was strong enough.

Ampella in early April tasked Macquarie Capital and Gresham Advisory Partners with testing bid interest after the company received a number of unsolicited approaches. Suitors, which Ampella said included leading global gold companies, had access to a data room of information on the company and were offered site visits to its Batie West project in Burkino Faso.

However, Ampella in a statement said it won’t continue with further negotiations after it became clear than none of the suitors was likely to put forward a proposal able to secure support from the company’s board and shareholders.

“We have maintained from the outset, we would only consider an offer to acquire Ampella if it was on terms that would be sufficiently attractive to our shareholders to justify giving away the considerable upside potential we see for the company,” chairman Peter Mansell said.

Mr Mansell said the company has a 3.1 million ounce inventory and $43 million in cash, and its management team would now focus on driving the project forward. Specialist resources investor Taurus Funds Management landed a 7.2 per cent stake in the company in April following a private placement.