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Coeur d'Alene Mining Makes Bid for Orko Silver

News release link:

My Take:

In December 2012, First Majestic made a friendly offer to purchase Orko Silver for about $2.25 per share. Then, today on February 13th (an unlucky day for First Majestic), Coeur d’Alene made a $2.70 offer. This was a 25% premium over First Majestic’s offer. I doubt First Majestic will make a counter-offer, because at $2.70, Orko is valued at $350 million. For a 75 million oz company, Orko is not worth much more than that. In fact, this might be good for First Majestic shareholders. After First Majestic announced this purchase, their stock price dropped 10% and has not recovered. Today, after the news, it when up 1%. Investors were not upset that they are likely going to lose out on this deal.

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