Hi Essam, What happened is Barrick couldn't get control, and the very basis of Peter Munk's foundation, his whole credo, is that they must have control. I think he thought if he couldn't buy the remaining portion that Bre-X would have been left, which would have been 18 or 20% I believe, from Bre-X, then possibly from a future purchaser of the Bre-X share, which would have in effect given them control, but when the government backed in for a larger amount, which in effect meant that Barrick would never have control, it was game over in Munk's book. They also do not like to have any partners whatsoever, but he figured that the goverment was a necessary evil in order to swing the deal, so long as they did not have control. He walked away after that. I didn't like his tactics then, and still think it was wrong, but you have to admit this guy has horseshoes around his neck.
Even though he would have had a backout option, such as Freeport had, it still would have embroiled him in the whole dirty affair and the taint that it would have left. I think he was already sorry for the publicity he received when he brought in Mulroney and Bush, and tried an end run around Bre-X.
Sad story all the way around, but the only ones I feel sorry for, are the little investors who got hurt so badly.
Cheers
Shirley |
