Takeover Targets in the mining sector Message Board

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Gold/Mining/Energy : Takeover Targets in the mining sector

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To: russwinter who wrote (75)	11/20/2000 10:09:46 PM
From: Claude Cormier	Read Replies (1) of 81

I believe BAY management would not recommend shareholders accept an offer below $6+.. And this is probably too high for any suitor. The current situation is that the discounts to NAV have now reached ridiculous levels. No bidders will take over a company at a multiple of 3-4 the current market price. And no target company wants to gives it assets at 50% of NAV. I guess we have this environment because few believe that metal prices will ever recovered. At the same time, the owners of the deposits don't want to give their assets for free after all the years spent developing them. EL Sauzal is still for sale for that very specific reason. In other words, I don't think MFL would go at $7 in the current market, even if it should. In a good market for precious metals, like we had in 1993-95, stocks like BAY and MFL would be selling in the $20-$40 range. This should help us remain patient with these gems. Cause the potential for a major improvment in this market sector is excellent in the coming months and year. I prefer to hold these long rtaher than see them going of the block at ridiculous prices. CC

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