{"id":516493,"date":"2010-04-05T10:15:00","date_gmt":"2010-04-05T14:15:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:418934"},"modified":"2010-04-05T10:15:00","modified_gmt":"2010-04-05T14:15:00","slug":"agnico-bid-for-comaplex-could-be-higher","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/516493","title":{"rendered":"Agnico bid for Comaplex could be higher"},"content":{"rendered":"

TD Newcrest analyst Daniel Earle is disappointed with Agnico-Eagle Mines Ltd<\/a>.'s friendly $762-million all-stock bid for Comaplex Minerals Corp<\/a>. The implied valuation of $10.32 a share for Comaplex is significantly below his 12-month price target of $11.50 a share.<\/p>\n

To make his point that the offer may be too low, he pointed to Agnico's 2007 acquisition of Cumberland Resources Inc., which gave it a gold project in Nunavut that is close to Comaplex's Meliadine deposit. The Cumberland transaction implies a comparable takeover price for Comaplex of $16.30 a share, Mr. Earle wrote in a note to clients.<\/p>\n

"We therefore advise shareholders to reject this offer," he wrote. <\/p>\n

He suggested that Agnico could pay more than $18.00 a share and still make this transaction accretive. The question, of course, is whether it will be forced to do that. Mr. Earle said there is a roughly 50-50 chance that a competing bid will be made by a rival company. <\/p>\n

On the other hand, fellow TD analyst Greg Barnes wrote that this deal is a good one for Agnico. He estimated that it is paying about 1.17 times net asset value and US$133 per resource ounce for Comaplex, which he said are "reasonable." He is not surprised with the transaction, given that Agnico already owns 12.3% of Comaplex and is developing the nearby Meadowbank project (which it acquired in the Cumberland deal). <\/p>\n

He maintained a "hold" rating on Agnico and a price target of US$67.00 a share.<\/p>\n

Peter Koven<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

TD Newcrest analyst Daniel Earle is disappointed with Agnico-Eagle Mines Ltd.'s friendly $762-million all-stock bid for Comaplex Minerals Corp. The implied valuation of $10.32 a share for Comaplex is significantly below his 12-month price target of $11.50 a share. To make his point that the offer may be too low, he pointed to Agnico's 2007 […]<\/p>\n","protected":false},"author":4061,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-516493","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/516493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4061"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=516493"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/516493\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=516493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=516493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=516493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}