here we go again. it's aurelian resources all over again, only this time in silver instead of gold. a "generous" 13% premium on a stock that is down 75% from its high.

it is all up to management. if they have the backbone to stand up to fresnillo, we have a fighting chance. the whole point of a shareholder rights plan is to prevent takeovers by stink bids like this one. there is no reason for macinnis to cave in. they have plenty of cash, they're in a stable political jurisdiction, and no reason to endorse this offer.

on the other hand, if management suddenly issues millions of options to board members, and does a private placement of millions of shares to fresnillo below market, then we'll know rubenstein has worked his black magic again.

forgive me for being cynical, but i have seen all of this before. this could even be enough to make me produce another video.

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.

http://www.reuters.com/article/marke...