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3 pts

Opinion on  Barrick Gold Corp. (ABX)     Sector: Basic Materials  >  Industry: Gold & Silver
Mining Company Bids for Rival

Jul 15, 2008 07:16 PM GMT
Tigre_bengale__2__-_small
Return Risk
+10.24% MID
Sr. Analyst

Barrick Gold has started a hostile bid of 354 million Canadian dollars, or $350 million, for Cadence Energy to lock in cheaper oil prices and get control of soaring production costs, the world’s top gold miner said on Monday.

The all-cash bid — a premium of 10 percent on Cadence’s Toronto-listed closing price on Friday — comes after Cadence has already agreed to a takeover offer of 301 million Canadian dollars from Daylight Resources Trust.
Barrick said its offer was contingent on the completion of due diligence and said it would file a formal offer as soon as possible.
Cadence said in a separate release that it had not entered into any agreement with Barrick and that its board maintains its recommendation for the Daylight Resources offer. (Reuters)


ABX:  This call was made on 07/15/08 @ $50.06
Rating:   Positive   $50.06 (07/15/08)
Gain/Loss:   -24.85% in 1412 days
Target:   $52.50 (+4.87%) in < two weeks
Allocation:   5.6% of portfolio


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