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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Lorne who wrote (26315)	7/29/2000 11:33:21 PM
From: teevee	Read Replies (1) \| Respond to of 26850

Author: teevee -- Date:2000-07-29 17:17:58 Cash is trash, especially DeBeer's:-)) I have some small hope that DMM may use their stock to better DeBeer's offer, "on paper" and with "paper", rather than "coin of the realm". This could force DeBeer's to use stock as well at some higher price. All we need do is look at the high prices that can be paid in takeovers(ie. recent Nortel acquisition, or how Barrick uses their stock to buy juniors and their assets) when using the leverage that stock versus cash can provide. An added potential benefit, is that there may be a tax free roll over provision included with an all stock offer, depending on how it is structured. Why would Diamet seriously consider making an offer for WSP? From a market perspective, in order to enhance liquidity and expand share price multiples( and to keep institutional shareholders happy), Diamet needs to get larger and acquire a growth profile. Taking over WSP presents an opportunity to make it happen. IMO, should Diamet make an offer for WSP, it would be refected immediately by an increase in Diamet's share price. Needless to say, DeBeers would offer very, very much more to prevent that from happening. Now that DeBeers has made an offer, consolidation of Canadian diamond companies and properties will occur one way or another. Let's hope Diamet makes an offer:-)) regards, teevee