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Gold/Mining/Energy : Pangea Goldfields T.PGD
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To: russwinter who wrote (1119)7/2/2000 1:14:45 PM
From: Enigma  Read Replies (1) of 1178
 
I think the groundwork was extremely well prepared here. Is there a risk in not tendering? - obviously it will pay off if Barrick doesn't get its 66 2/3 % because Barrick will have to sweeten its offer. But what if Barrick gets 70 %? This is exactly the sort of thing we should be discussing on this thread. I've received a few PMs about all of this - but my guess is that others are somewhat disillusioned. And I've no doubt that brokers will be recommending acceptance. But we have to have a level playing field, full disclosure of real insider positions, etc., in order to make a reasoned decision. I've no doubt that Potvin feels he did the best he could do in the circumstances - as he gave most of the cards to Barrick when he got into bed with them. I think this has worked out well for Barrick too - say they'd made a hostile bid at $6.25 (just over the warrant price) - IMO they'd have wound up paying at least $9/share - probably more. They have learned from the ARP fiasco.

I think you're right about property swaps too - but I think Barrick, if successful here, will let the chips fall where they may with Buly South as they must covet it, and will probably get it. A lot has been left on the table for Barrick - who knows - it may be worth in excess of $20 to them in the end.

And this offer would be far more aceptable if retail investors were offered Barrick paper at the same price - in Canada we get a tax free rollover on a swap. Pension Funds do not pay tax, and Mutual Funds are neutral for tax purposes - the tax is passed on to the unit holders.
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