I found this on the web:
"Principals in MM Asset Management began their careers at a Toronto-based hedge fund called K2 and Associates Investment Management."
source:https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20080331/RRABBIT31
They have worked during the same week on other merger deals in the past:
"Another theory is the offer is doomed because it's deemed to be too low. During the week, two managers, MM Asset Management and the K2 Principal Fund, made filings showing they both owned more than 5% of Tyler; together they own about 16%. Certainly they are looking for a higher price -- like between $1.40 and $1.50 a share."
source: http://www.financialpost.com/scripts/story.html?id=7c36ed3e-64c2-4f15-bd91-74f973139667&k=45837
Both MM Asset Management and K2 are opportunists who make money during a merger and acquisition situation.
To make the plot more interesting, take a look at this deal that MM Asset was involved with a takeover of Cordero in June 2008:
"TORONTO _ MM Asset Management Inc. says it has acquired more than 5.5 per cent of the shares in Cordero Energy Inc. (TSX:COR), a junior natural gas producer that is at the centre of a stalemated takeover battle.
The investment firm said one of its funds has acquired more than two million shares of Cordero "for investment purposes only" but a holding of such a magnitude could be influential in a tightly fought takeover battle.
The Cordero board had endorsed an initial offer of $4.35 per share announced in February by Enmax Corp., an electricity distributor owned by the City of Calgary, and a sweetened offer of $4.75 cash on May 16 that values Cordero at $177 million.
Last week, however, Ember Resources Inc. (TSX:EBR) entered the bidding with an all-stock offer for Cordero. Ember´s offer was worth $5.30 per Cordero share or $195 million when it was announced, a premium of 12 per cent over Enmax´s offer.
However, Ember´s offer is worth less now due to a decline in its own stock.
At the end of trading Monday, Ember´s shares closed at $2.01 _ making its offer worth $5.12. Cordero shares closed at $4.84, nine cents above the Enmax offer.
If Enmax is rebuffed, Cordero´s board has agreed to pay $7 million to it if there´s a deal completed with another suitor within six months of the expiry of the Enmax offer.
Taking into account the $7-million non-completion fee, the Ember offer values Cordero at about $183 million _ about 3.4 per cent above the Enmax all-cash bid.
The Enmax offer is currently open until June 13, at 4:30 p.m. MT, after the deadline was extended last week just before the previous deadline was about to expire."
source: http://www.oilweek.com/news.asp?ID=16449
Here is where it gets interesting. Ember was an all-stock offer and they were a puny company in comparison with Enmax. Sound familiar??
The story continued:
"Ember had pitched and sweetened the offer before Enmax decided to withdraw, which was among the reasons Enmax was unable to convince enough shareholders to tender to its $5.20-per-share, all cash offer, which included a 45-cent-per-share special dividend from Cordero. Ember had also convinced the holders of more than a quarter of Cordero shares, about 26.5 per cent, to side with their deal rather than Enmax’s, effectively scuttling the offer from the city-owned electicity and natural gas utility."
"Ember said Cordero has agreed to be acquired in a reverse takeover by Ember for a total compensation of $5.50 per share, either through $5.50 in cash or 2.683 common shares of Ember. The total amount of cash available to Cordero shareholders is a maximum of $70 million and a minimum of $55 million.".
source: http://www.canada.com/calgaryherald/news/story.html?id=cd876a11-d959-4184-9381-674380e69886
What does this have to do with Noront??
I will allow you to connect the dots after looking at the following two web pages:
http://laurelhilladvisory.com/images/lhca_transactions.pdf (look at the Ember reference)
http://www.norontresources.com/freewestoffer/ (go to the bottom and look at who the advisory group is that is working with Noront on the FreeWest offer).
Very interesting times to say the least!
M1.
