Ever wonder if history repeats? Goodman + Pirie + company xyz = takeover
http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/ned-goodman-unloads-another-big-asset-in-breakwater/article615156/
"Is Ned Goodman calling a top to the market's run? Because for the second time in seven months, the investor is peddling a major asset.
After agreeing to sell DundeeWealth , the asset-management company his family built, to Bank of Nova Scotia late last year, he's agreed to sell zinc miner Breakwater Resources for about $663-million.
On a short-term chart, the $7.50 a share offer for Breakwater Resources looks pretty nice.
The offer, from zinc industry consolidator Nyrstar, is $7 a share for the stock and a promise of a 50 cent special dividend. That's a 44-per-cent premium to Tuesday's closing price and more than double where Breakwater was just a year ago.
However, unlike a lot of resource companies that have bounced back, and more, from the financial crisis, Breakwater is nowhere near it's peak. The stock fetched, on an adjusted basis, more than $30 per share pre-crisis. We say adjusted because things got so bad in 2010 as the stock traded for pennies, that Breakwater consolidated its shares, with investors getting one new share for ten old shares.
The biggest cheque will go to Mr. Goodman's Dundee Corp., which owns 22 per cent of Breakwater and has a big chunk of the board. The transaction will also mean another nice fee for GMP, which is the house bank for Dundee and Mr. Goodman.
For Nyrstar, the acquisition takes it closer to its goal of producing 50 per cent of the zinc it needs to feed its smelters. Breakwater's four mines raise the percentage to 43 per cent from 31 per cent."
