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Gold/Mining/Energy : Peruvian Gold Ltd. PVO -- Ignore unavailable to you. Want to Upgrade?

To: Matt Cecile who wrote (519)	4/7/1998 2:57:00 PM
From: Robert Dydo	Respond to of 892

No doubt. They are put from 18% to 4% like all of us by the same ratio. The deal may have its reason but it is a fundamental disaster. Goepel Shield & Partners was underwriting Gabriel's pps and it was advising PVO on properties, just coincidence? MGM is buying past producers in Mexico for $250,000. Peruvian puts $12M for properties in Romania which beyond one hole nobody knows what are really about. I think Bradstone has a point. Check my post about other scenario why this deal is taking place. Thanks for the post. Robert

To: Matt Cecile who wrote (519)	4/7/1998 8:33:00 PM
From: Andre Koluksuz	Read Replies (1) \| Respond to of 892

What about a scenario like this ; In the next couple of weeks Bradstone scares the hell out of PVO and GBU shareholders by stirring the pot, and the PVO shares go down to 50 cents or so. Now the merger values the GBU at 1.40x0.50 = 0.70 cents which p...s off the GBU shareholders big time (GBU shares were trading at a dollar before the announcement). And of course they vote down the merger or just before the voting Bradstone come with an offer to buy PVO at say 0.80 cents/share (which is 60% premium to 0.50 cents) and the frustrated PVO shareholders tender their shares willingly afraid of losing everything in this dirty Vancouver game. In this case Bradstone would not mind paying the $1 million to GBU for break-up fee as the new owner of PVO. The net result would be that Bradstone would have acquired PVO at about 0.80 cents, which is less than the value of cash they have. If it weren't for the disastrous decision of PVO mgmt, Bradstone would have to pay well over $1 to buy the remaining shares of PVO when it was trading at 90 cents before the GBU merger announcement. Any thoughts????