As a Greystar shareholder I think this is better for Kinross then Greystar, unless gold continues to fall and both become worthless. Here is a copy of my post in the Greystar subject group:
In today's Financial Post, page 28:
"Greystar stake raised
Toronto - Kinross Gold Corp. (K/TSE) will increase its stake in Greystar Resources Ltd. (GSL/VSE) to 19.9% through the purchase of 7.8 million Greystar common shares from four private shareholders. Kinross will issue 1.4 million common shares in exchange for the Greystar shares."
I did not see anything in the Globe and Mail.
I read this as Mr. Buchan the CEO at Kinross, telling us that our stock is worth .18 of a Kinross share. So if K is worth $4.00 then GSL is worth .72 and the market is agreeing with Mr. Buchan.
As of the 1996 Kinross annual report Mr. Buchan still held 408,840 of the Kinross preferred shares, equivalent to 3,375,179 Kinross common shares. So Kinross common stock is a currency that Mr. Buchan takes very seriously.
My wife has some Kinross stock, I used to, but now we have a much more important position in Greystar. So from one point of view, I would like to see Kinross do well, but not at the expense of Greystar. Mr. Rovig the CEO of Greystar sits on the Kinross board of directors. I would not be very happy to see Mr. Buchan take up a similar position on the Greystar board of directors.
My wife and I used to own stock in Mirage. This came to be controlled by Kinross and I was not happy with the result.
It is like the cat and the mouse. If the cat is working for you, it is good that he eats up the mice. But if you are the mouse it is not good to have a surprise visit from the cat.
Sean |
