Q: Hi team, what do you make of the big drop and then the nice recovery since the merger was announced.
Could that price action be based on some manipulation angle?
Do you see the KRR stock price going above $5.90 ? Also, do you see other bidders entering?
Thanks
Rob
Could that price action be based on some manipulation angle?
Do you see the KRR stock price going above $5.90 ? Also, do you see other bidders entering?
Thanks
Rob
5i Research Answer:
Westgold has risen 10% in the past two days as investors reconsider the benefits of the merger. Since the deal is partly in Westgold stock, KRR shares benefit accordingly and we would not consider it nefarious trading. In a gold rally KRR could continue to do well by proxy. We think the odds of another bidder are probably about 15% or so. Some KRR investors may prefer an all-cash bid, which potentially leaves an opening for another party, if interested.