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Gold/Mining/Energy : ARP - V Argentina Gold -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (1645)	12/13/1998 4:00:00 PM
From: Daytek77	Read Replies (1) \| Respond to of 3282

Claude It should come as no surprise that I disagree with your assessment. Read carefully at what Barrick did: From Argentinas' press release "Representatives of Barrick and its financial and legal advisors attended at the offices of the Company in Vancouver and advised that Barrick intended to make a hostile take-over bid for the Company unless definitive agreements were entered into by the Company and certain of its principal shareholders to support an offer to be made by Barrick at a price to be agreed upon. To facilitate the negotiation process, the parties entered into an agreement which provided for exclusive negotiations and confidentiality and which expired at 5:00 p.m. (Vancouver time) on Tuesday, December 8, 1998. Negotiations took place throughout the day which did not result in the parties reaching an agreement. The negotiations concluded with Barrick stating that it would make an offer to purchase all of the Company's shares at a price of CDN$5.50 per share in cash if the Company and certain of its principal shareholders entered into support agreements to be followed by lock-up agreements. " Barrick had a confidentiality agreement with Argentina, they told them we will pay $5.50 for all the shares of your company but the major shareholders must tender their shares and sign a lock-up agreement. This would have been the end of the game no matter what the drill results showed. Then Barrick stomps out and says we will make a hostile bid for your company at $4.00. This is a tactical move preying on long suffering shareholders who they think will take anything considering the pessimism the pervades this sector. They may have some success but the next few weeks will be critical to future developments. How did management respond? "Management will continue to have discussions with other interested parties and is committed to maximizing shareholder value. The drilling program on the Company's Veladero's Project continues and the Company expects to be in a position to release further drill results shortly." They seem to be confident that further drilling and discussions with other interested parties will drive the price higher than $5.50. If not they would have accepted the offer and that would have been it. Tony