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Wheaton merger

January 6 2005 at 9:10 AM
Jim 

 
Larry,
Goldcorp is offering to buy Wheaton river 1 share GG for every 4 shares of WHT. I own some WHT. Would you mind explaining the pros and cons of accepting the offer?

Thanks,
Jim

 
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Re: Wheaton merger

January 6 2005, 3:30 PM 

Jim,

The WHT board of directors has recommended that shareholders accept the offer so I’m sure they will unless some big institutional shareholders like Fidelity decides against it. So your real choice is to be a Goldcorp shareholder or just bail out of your WHT stock before it goes through. If your attention was to own WHT I don’t see any downside to owning GG, which will own the WHT properties.

Of course, the rule that “anything can happen” applies in spades to these merger and acquisition deals. For example, Glamis is interested in Goldcorp. So there’s a game being played there as well. My suggestion is to stay with whatever your plan was before this happened. If your plan was to hold on the stock then the only difference is you’ll own shares in a bigger company.

What these companies are trying to do is lower their production costs. So in the long run all of this M&A activity is probably going to work out for the good.

Larry

 
 
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