The IAG & WHT merger

So CDE is asking WHT shareholders to reject a merger with IAG. On the on hand this makes sense: CDE is offering more than IAG. On the other hand, CDE negative cash flow so I understand the board’s concern about the long term prospects of a CDE/WHT merger.

Like CDE, Fairvest also wants shareholders to reject the merger between WHT and IAG. It seems that they feel shareholders should ahve more time to consider the CDE bid.

Meanwhile, IAG is also rejecting an offer, saying that the deal with WHT is superior. The other company, Golden Star, is trying to win a legal battle to make a proposal directly to shareholders. They have a convincing argument too. Pure gold stocks often trade at a higher PE than mixed metal stocks. A combined Golden Star and IAG would be a pure gold play. IAG + WHT wouldn’t (WHT also produces silver).

I’m holding both for now. Some experts expect higher bids. Some say the IAG/WHT merger makes sense. I don’t know what to expect. As for what makes sense, I’d like to see the biggest immediate gain: CDE/WHT and IAG/GSS.

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