The offer is valued at 4.26 per share but Extorre closed trading at 4.27 per share. Perhaps people are thinking that there will be a superior offer forwarded and that Yamana are then going to have to better that.
Looking at the Extorre chart, even though the offer was at a 68% premium to Fridays close, Extorre was trading at the 4.26 level at the end of April, start of may. It was trading at around $10 at end of Jan and $13 last July, before the SHTF in small resource stocks that are not producing. Granted there are also some emerging sovereign risk issues in Argentina that I assume were baked into the current low Extorre share price as well.
This looks like the definition of a low-ball offer while the share price is depressed but it seems Extorre management are happy with the bid, seeing as Extorre will pay a 15m fee if the deal is terminated.
For AMX this would be like our management coming to us with a deal valued at 1.10 per share and a $15m smack on the cheeks if the deal doesn't go through (excluding the possibility of a higher competing bid being offered by another company of course) . I cant imagine any of us shareholders would have been anything close to happy with that save a few who have bought in at the recent lows and are happy to make a quick buck. No thanx !! :)
AMX Price at posting:
59.5¢ Sentiment: LT Buy Disclosure: Held
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