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Can Shareholders vote this down? Or is it a done deal?
This sale was a survival sale. I suggest the new company can afford to slow down production in the DRC to teach the greedy Dictator and his henchmen an unforgettable lesson in economics. That should slow down the corrupt plans to retire to the South of France with their countries money. They may then relent on their greedy new tax law but I suspect the hold on Presidential elections will continue indefinitely. Disease will become the great leveller but by then the rats will have departed the sinking DRC ship.
Whatever you call it, it's ignited the sp.
Agree, this is not a merger its a sell out
Looking at the share price performance over the past ten years, the price on offer is about 10% below the average, but considerably a higher discount when compared to the past three years. As mentioned below it's an all paper deal with the consideration being paid in shares which will not be traded in London. This is about executive ambition taking precedence over the interests of shareholders. Hopefully the institutions will insist on a higher price, i.e. more Barrick shares for each RRS share.
I have waited quite along tie to hold a stock that has been subject to a take over - So why do I feel like I have been sold short???
This is a FTSE 100 company that makes money so I would expect an offer to be well in excess of its current value and instead I'm receiving are shares in a company that I don't want. at what I consider a low ball offer... I' also find myself in the currency speculation market due to barrack being a non uk stock... lets hope brexit pushed the pound down...
Am I the only one that feels that we should have been looking for a much higher offer??? or have I missed something???
$2 us dividend is a yield of 2.8% on today's sp and ex rate. Says it'll be ex div around the change date, whenever that will be.
It states that existing RRS share holders will get $2 a share dividend still. Don't know what will happen going forward when its one company, but they are honouring the current RRS divi.
I research indicates 1%...
What yield is barick paying? I can't seem to find any info
Thanks beatrootjuice, fingers crossed.. hopefully divis improve too.
They're , barrick that is, not offering a price as such, it's just shares,so multiply your rrs shares by 6.128 ( think that's right) to get the number of barrick shares you'll get. Now you multiply that by the current barrick sp. There's the exchange rate to take into account too as it's in us$ not £. Hope that helps. It's a coin toss as to sell now or not, but being as you're down I would hold for the longer term. You'll make profit at some stage, it's gonna be the biggest gold company in the world. Unless you need the money urgently I wouldn't take a loss if I were you ,look both rrs and barrick have gone up 6% on the news so the markets like it. Don't panic sell would be my advice.
I am completely confused, so any guidance would be appreciated. My buy in was £57.32.. So currently running at a loss. Unlike Comcast buying Sky, I can't see a price here for a takeover... Any advice on whether I should sell now or hold ?
Another thing to consider when owning shares listed in the states. If the £ crashes next march we'll be quids in here if you hold but if it rallies again we'll not be getting as much when we sell.
With conversation and all, between barrick and randgold. Which will follow which and how long have we got to get out if we don't want to trade on NYSE.
Just opened on NYSE ,up 4% . Deal seems to be liked by the markets at both ends. What to do???
The announcement doesn't seem to specify a date:
"It is intended that dealings in Randgold Shares (including Randgold Shares underlying the Randgold ADSs) will be suspended at 5.00 p.m. (London time) on the business day prior to the Effective Date"
...
"Effective Date" (i) the date on which the Scheme
becomes effective in accordance with
its terms; or (ii) if Barrick elects
to implement the Merger by means
of a Takeover Offer in accordance
with the terms of the Cooperation
Agreement, the date that the Takeover
Offer becomes or is declared unconditional
in all respects
Does anyone know when our shares will be converted to ABX? Will it be soon or will there be months of due diligence etc?
Both shares have been bouncing along the bottom for a couple of months and both companies have decent profit to revenue ratios, so an increase in the SP is due. That said, Barrick is the bigger, but the profit margin is less than that for Randgold, so it could be that John Thornton is buying income rather than growing it.
I have made an underserved profit of 3% on this deal, which just goes to show that God likes a joke. I think that I will sell up and come back when the dust settles.
Hi Jazz, <br /><br />As a shareholder myself, I was thinking the same. From what I have read, we will get 6.1280 shares of Barrick for each Randgold Share. Barrick is current $10.47/share and so that equals = $64.16/RRS share. Converted to GBP from USD, I get approx. £48.88 per RRS share, which is approximately the price of RRS before the news. <br /><br />Therefore from that working, it may be better to sell now? Someone please jump in if I am wrong! However, if Barrick jump 5-6% on the news when the US markets open then there would be no point selling obviously. <br /><br />As said above, please can anyone let me know your thoughts regarding this?!<br /><br />GLA
£49.35 on yesterday close price of barrick on NYSE and exchange rate of 1.3 .
Hi,
Can someone help me understand what the price converts to vs selling now at £52 ish? Surely the price should now be broadly in line with whatever the new share price is trending at?
I thought the SP would jump at least 10%. It's up only 3% atm so the market is clearly not impressed.
IMO, a completely cynical betrayal of RRS shareholders by board of directors.
5,130.00 up 4.2%...……………………….