Q: With the latest news release indicating that there is an acquisition that will likely take place some time in the future is there any reason to hold this stock until then to basically get the same $$ as where it is trading now ? I suppose there is always a chance another offer is made at a higher price.
5i Research Answer:
G is being bought by Ashanti PLC for $1.70 C$ cash. With an all-cash friendly, decent premium bid from a large entity, the odds of another party showing up are quite low. There is still about a 3% gain to be made to closing, so even if it is a year end closing it is not a bad annualized return, with relatively low risk. We could go either way here. If the markets keep rocking of course more could be made on other ideas. But considering the odds of a new buyer are more than 0%, we would also be comfortable holding for a reasonable return.