I didnt type this, but it expresses my views on this mega [ego] merger quite nicely
In my view Kinross is paying way too much for Red Back at a time when gold prices are their highest since the 1980s. Getting sucked into a boomtime acquisition is making the same mistake that Teck management did in 2007 when they bought Fording and nearly trashed the company.
I cannot believe the statement below from Kinross -
" Kinross believes that the increase in Kinross' and Red Back's share price over recent days reflect growing shareholder understanding of the value and potential of this transaction, and confidence that the combination will be completed. Kinross believes that this confidence is based in part on the strong track record of its management team in creating value for shareholders in previous transactions, and its success in finding and developing new world-class gold properties globally. " I guess Type Burt must be patting himself on the back. HIGH FIVES To all the board members as well. Reality is despite surging gold prices Kinross shares are still closer to its lows rather than creating new highs as other producer are experiencing. I would like TYE's opinion on why IMG has traded over $20, or ABX at $50 recently. According to Tye the price of gold has nothing to do with this. What an insulting comment to release to shareholders! Kinross once enjoyed its shares over $24. To brag about a $18 share price is just plain stupid. Kinross shares are hitting new lows with gold over $1200. I am also interested to see happens to TYE's pay package. I am sure the board will make sure he will be compensated accordingly. His share options are priced 18.10 - 2007 23.79 - 2008 23.74 - 2009. The shares will not reach the $20 level if deal goes thorough. It will be interesting to see what happens. VOTE NO TO MERGER
