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

To: tanoose who wrote (1886)	1/9/1999 2:30:00 PM
From: C Bunka	Read Replies (3) \| Respond to of 3282

Hi Frank, There has been so much press across Canada about this takeover that virtually everyone knows of Barrick's "private" $5.50 offer. I can't see why anyone would tender at $4.00 - but I guess some will anyway. Most people would be angry if Barrick apparently is willing to pay the Lundins $5.50 but pay us common folk ANYTHING LESS, and thus not tender. Newmont is on the property again - will they jump in? Barrick has ALWAYS had the strongest hand in this poker game and they are playing it well. But here is yet another scenario to consider that I'm not sure has been talked about yet: Do we necessarily assume that Barrick insists on 100% control? Their offer is for a minimum of 50.1%. If they don't convince TD, Lundins, and Newmont to tender they will "only" get, what, 65%? So with 65% of the stock Barrick would, I assume, take control of the exploration program. The people holding the other 35% of the stock could smile as they watched Barrick place a half-dozen drill rigs on the property and bump up the schedule by several years. Maybe there is a take-over expert out there than can provide details, but I think a company needs to have something like 90% of its stock in the hands of one party before it can force the sale of the remaining 10% of the stock. So ARP stock would continue to trade in the market until then and, we assume, reflect the value of this accelerated drill program. With all this to look forward to, why tender now? I guess we'll find out on Monday. It is going to be a wild week! Chris Bunka