Very good question. Why not wait for $7.00? I wish I knew the answer. I suspect it's because they have made a very nice, quick profit and want to take it while the takin's good. The buyers are probably a combination of Barrick and arbs.
This may all be very much above board but it really looks bad. The day after the PP closes, the stock takes off and 2 days later a takeover is announced. Obviously, someone with inside knowledge of the takeover discussions leaked, or the stock would not have acted as it did. 2nd, a takeover at this price coming only 3 days after the PP closed is very strange, IMO. The buyers of that PP at C$4.50 made 36% in 3 days on their investment. Investment? Hell, this happened so fast, they probably never even had to disburse the cash. 36% in 3 days! Annualize that and see what you get for a rate of return. Unbelievable.
The site I use for quotes was also locked at 99,900 for the bid and ask volume. Maybe because the site can't handle a number over 5 figures. That's the only thing I can think of.
No, the shares are not tendered. Of course, if Barrick is the buyer, they don't have to be tendered.
Terry |
