Today we go with Cameco (CCO.to) (CCJ) and its pre-bell NR linked here.
This is what they wrote:
Cameco (TSX: CCO.TO - News) (NYSE: CCJ - News) announced today that it will not increase or extend its offer to acquire all of the outstanding shares of Hathor Exploration Limited, which expires on November 29, 2011.
"After careful consideration we cannot justify increasing the price beyond our current offer and accordingly, we will let our offer lapse," said Tim Gitzel, president and CEO of Cameco. "Cameco has remained disciplined through the bid process to ensure that we make the best decisions for our company and its shareholders."
Gitzel said that allowing the bid to lapse will not adversely affect Cameco's plan to double annual uranium production to 40 million pounds by 2018.
"Our plan involves existing assets in our development pipeline and we remain on track to meet our objectives. We will continue to explore other growth opportunities, but only where there is a clear benefit to our shareholders," Gitzel said.
And this is what it means:
Hathor Resources (HAT.to): I’d take profits
Since our original $3.90-or-so call to buy HAT.to and expect a bidding war that would push the stock up to $5 and above we’ve seen a bidding war develop that has pushed the price to (just) beyond $5. If you’re still holding this one, it may be time to cash in and take the approx 28% win the post-Cameco offer period has given in profits. The feeling is that there may be another round of bidding (which would see Cameco raising to around $4.90 and Rio Tinto very likely to come back at $5.10 or so), but the feeling here is also that we’re at about the limit that Cameco will go to (and the next counter to $4.90 is hardly a given, either), so with potential further profits starting to look a bit thin, maybe selling now and giving somebody else the chance of a few pennies is the wiser course.
Why yes he did!