Phelps Dodge increases bid for Inco:
Phelps Dodge has increased its bid for Inco by $2.50 to $00.00 the new offer is intended to help Inco fend off a competing bid for Falconbridge.
Inco has increased its bid for Falconbridge by $1.00 in an effort to fend off the competing bid by Xstrata. The Xstrata bid is an all cash offer of $59.00 per share the Inco bid is a combination of Inco shares and cash and is currently calculated at approximately $62.00.
Falconbridge shareholders should consider the option of selling their shares as there is a risk that the takeover will become mired in a legal battle and be delayed to the point where the small amount of gain will not be worth the wait.
Inco shareholders should also consider selling into the market as the convoluted takeover by Phelps Dodge may also be held up by legal arguments by Tech Cominco regarding the proposed Inco poison pill.
Once these takeovers become contentious and the offer prices reach a substantial premium to the rest of the sector it is prudent to bail and look for other opportunities in the sector.
The mid tier commodity producers look very attractive on a relative valuation to the large producers. These companies such as LionOre (LIM-T) and Aur resources (AUR-T) are likely to be takeover candidates themselves in the near future.
Take the money off the table and let the institutions wait around for the dust to settle. There is a substantial risk these deals will fall apart.
For more information go to www.campbellreport.com
Inco has increased its bid for Falconbridge by $1.00 in an effort to fend off the competing bid by Xstrata. The Xstrata bid is an all cash offer of $59.00 per share the Inco bid is a combination of Inco shares and cash and is currently calculated at approximately $62.00.
Falconbridge shareholders should consider the option of selling their shares as there is a risk that the takeover will become mired in a legal battle and be delayed to the point where the small amount of gain will not be worth the wait.
Inco shareholders should also consider selling into the market as the convoluted takeover by Phelps Dodge may also be held up by legal arguments by Tech Cominco regarding the proposed Inco poison pill.
Once these takeovers become contentious and the offer prices reach a substantial premium to the rest of the sector it is prudent to bail and look for other opportunities in the sector.
The mid tier commodity producers look very attractive on a relative valuation to the large producers. These companies such as LionOre (LIM-T) and Aur resources (AUR-T) are likely to be takeover candidates themselves in the near future.
Take the money off the table and let the institutions wait around for the dust to settle. There is a substantial risk these deals will fall apart.
For more information go to www.campbellreport.com
posted by Grant | 8:29 AM
0 Comments:
Post a Comment
<< Home