Anyone know what is happening with Wheaton River wrm). Was a lot of merger talk and Iamgold was suppose to buy them out and pay $5.12 per share. Stock is down to 3.90, anyone have any inside??
Posted by northernprophet on :
Remember, this is not a cash deal, it is a stock deal, so when gold goes down in price the value of both WRM and Iamgold goes down.
Posted by alwaysl8t on :
Read that the deal will not be approved till June. As it is a "stock deal" when is the final share price determined.
On the day the deal was announced, Iamgold was trading at over $9.00/share, so on that day, .55 shares was worth $5.14. Since it is a stock deal, WRM shareholders will be getting .55 shares of IMG, no matter what the price of IMG is. The ".55" part won't change, but the price of both companies will, so THERE IS NO SET SHARE PRICE TO BE DETERMINED. On the exact day the deal closes in June, IMG could be trading at $7.00, or $10.50, or any other price. If that same deal were announced today, .55 IMG shares would be worth much less. On the upside, this gold weakness looks like a temporary pullback, so by the time June rolls around, IMG could be trading at over $10, making the deal worth more than $5.14 in stock.