If you'll remember, late last year a make-believe Chinese company called LionGold pretended to offer to take over Minera IRL.
The big story of this week is the pretend $750M takeover of Allied Nevada by China Gold Stone.
CEO.ca - M&A heats up with China Gold Stone tender for Allied Nevada.
Don't bother reading, cos within hours the supposed takeover collapsed in a cacophony of derision.
Yahoo Finacne - Allied Nevada responds to offer with uproarious laughter. Quoting most of the press release:
Allied Nevada received a letter from China Gold Stone yesterday which included such a proposal (the "Proposal"), however, for a number of reasons, the Company seriously questions the credibility of the Proposal and advises shareholders to review announcements from China Gold Stone with caution. The Company identified the following concerns with China Gold Stone's announcement and the Proposal:Translation? ANV has no clue who these guys are and doesn't even know if they actually have any money.
Concerns with China Gold Stone
•Together with its advisors, Allied Nevada has not been able to find any substantive published information on China Gold Stone and cannot substantiate the credibility of the Proposal.
•There is no public information available to indicate that China Gold Stone has the financial resources to complete the proposed transaction.
Concerns with the Alleged Proposal
•Contrary to the Announcement, No Tender Offer has Been Commenced.
•Pursuant to US federal securities laws, a tender offer commences upon the filing of a Schedule 14D-1 with the Securities and Exchange Commission ("SEC") and no such filing has been made.
•The Announcement indicates an expiry date of January 24, 2014, which is contrary to U.S. and Canadian securities law.
•The Proposal is non-binding, and does not provide any certainty or commitment to proceed with a transaction.
•The Proposal is subject to due diligence and is conditioned upon execution of definitive agreements.
Allied Nevada has contacted the SEC and the Ontario Securities Commission with its concerns about the validity and legality of the announcement and alleged proposal.
Peter Koven at FP smelled a story and decided to weigh in:
Financial Post - Mining industry confused by Chinese company.
However, I won't quote from the article because the Financial Post seem to demand that a blogger obtain a license for fair comment quoting. In fact, the FP will no longer be quoted on this blog whatsoever, nor will I ever again link to their articles or otherwise mention them or their writers in any way.
Gee, demanding that I "license" your article sure worked out well, didn't it guys?