Fresnillo buying Mag Silver

And Otto nails another takeover story.

As part of this post on October 15th, your prescient Otto wrote that Fresnillo (FRES.L), Mexico's very large and very cashed-up silver miner, was going to move on Mag Silver (MVG) (MAG.to). The post wrapped up by saying:

"..Make no mistake; MVG in now most definitely in play. Fresnillo has decided to risk this bear market and try for MVG while prices are still low. Whatever, but Fresnillo has drawn a clear line under this current share price and the risk/reward equation most definitely favours buying MVG."

Tonight, just seven weeks later, this hits the wires:

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Dec 1 (Reuters) - London-listed Mexican miner Fresnillo Plc (FRES.L: Quote, Profile, Research, Stock Buzz) said its unit intends to make a formal offer to acquire the remaining shares that it does not already own in MAG Silver (MAG.TO: Quote, Profile, Research, Stock Buzz) (MVG.A: Quote, Profile, Research, Stock Buzz) for $4.54 per share in cash.

The offers represents a 13 percent premium to the stock's Monday close of $4.00 on the American Stock Exchange.

Based on the 49.2 million shares outstanding as of Nov. 24, according to Reuters data, Fresnillo's offer values the remaining 80.2 percent stake in MAG Silver at about $179.0 million.

Fresbal, the company's unit, does not intend to yada yada continues here

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The only bummer is the price; at U$4.54 for the US stock it's just 3c above the 15th October closing price (though you could have got in at $4 a couple of days after my post), due to the sector-wide slaughter and not really much to do with MAG.to itself. So be it. Fresnillo is getting a very big bargain compared to prices of just six months ago. However it's taking on the risk if any prolonged slump in the silver market, but hey...it's a silver miner and it was always a clear shot to buy out MAG, so now's a great time. Smart move, I say.

Anyway, feel free to write in and tell me what an irritating bighead I can be at times. Thanks in advance. Here's the MAG.to 12 month price chart to round off.