Board of Ventana Gold Subscriber C $ 12.63, expressed as a percentage of the offer, Eike Batista EBX Group opportunities, the company aims at undervalues the higher price.
Author: Cameron FrenchPosted: Thursday, 23 Dec 2010
TORONTO (Reuters)-
Government, Ventana Gold (RUSSIAN TO) has urged shareholders to reject the exchange of C $ 1.5 billion (1.49 billion dollars) in the Brazilian billionaire Eike Batista, driving up to the Canadian company's shares as investors anticipate a higher price from.
Ventana develops, which cause concern for man owing to possible prejudice to La Bodega gold deposit, in Colombia, said on Thursday, unwanted C $ 12.63 ($ 12.50) per share cash offer Batista aux undervalues Canadian Acquisition company.
AUX created specifically for the offer of the Batista's EBX Group unit. Batista, set up by several companies and is one of the world's richest people, already owns approximately 20% of the Ventana.
"We recommend that you do not own shares pursuant to the invitation to tender shall be taken into a better offer than AUX quote may emerge," said Stephen Orr, CEO of ventana for investors and analysts-invitation to the annual general meeting.
"The Government has given the Ventana-the company's management and to examine the options, the mandate of the special advisers, and to this end, a number of other potentially interested parties have been contacted and the number of agreements have been signed confidentiality."
Orr said that the children had to introduce a comprehensive electronic miner data space and that a number of parties had actively properly.
Ventana's shares were in the 36 Canadian cents, or 2.8%, C $ 13.41 Toronto Stock Exchange on Thursday afternoon. The strain is 33,7% from 16. Nov before Batista offer was unveiled.
Orr said that the company's shares are above AUX's bid, showed the market thought the company was worth more than that.
He said the offer of the proportion of the premium, AUX 26% of its Nov. 16 closing price is based on the Ventana.
"However, the public sector, the average premium Gold over the last 10 years, has had a 34% 32% of the global transactions and events in Canada," he said.
SEEN HIGHER PRICE
Michael Fowler, analyst, Loewen Ondaatje, McCutcheon, said public rejection is not a surprise.
"We believe is the other providers of Ventana or Mr. Batista is the making of their own, as referred to in sweetening," he said in a note.
Fowler said, Batista is likely to lead to an increase in the share of C $ 15 (a) his quote. His estimates assume that the company finally fixed for a period longer than about 10 million ounce deposit. So far, the company is a limited resource, 3.5 million ounces of gold, silver and copper, some.
Orr said call that Ventana is waiting for the resource-base, with a view to preventing double 7 million ounces of gold 18-24 months. He said the company had already begun my underground exploration site.
Ventana has been one of the hottest topics of the exploitation of the stocks of the Toronto Stock Exchange during the last two years than has unveiled the La Bodega promising Drill results, such as the gold price has increased.
The company's stock has risen to 37-fold, because the end of 2008, as the case may be, even the gold of more than 50% at the same time and was $1,377-Ounce Thursday.
Ventana unveiled the long-awaited original resource calculation and the scoping study, La Bodega in November, the layout of the activity, the average money in the first six years of gold equivalent ounces 347,000 annual production plan costs $ 322 per Ounce.
It shall assess the 297 million dollars and a total of capital in the start-up costs of my life in 14 years.
Canadian junior miners Greystar resources (GSL. TO) and GWY. V (Galway resources) also develop area La Bodega deposits and analysts have speculated, the companies will eventually be codified.
Ventana has hired Goldman, Sachs & Co. and TD Securities as financial advisors to Davies Ward Phillips & Vineberg LLP as its legal adviser, acting as agent, and Laurel Hill Advisory Group information as its agent.
($ 1 = $ 1.01 Canada) (Add reports to John McCrank Toronto and Abhiram Maria Bangalore; editing by Peter Galloway)
