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:
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
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.