MAG Silver: Bid Withdrawal a Positive – BMO

FP Trading Desk submits:

The six-month soap opera is over for MAG Silver Corp. (MVG), as its joint venture partner Fresnillo PLC (FNLPF.PK) has finally dropped a peculiar takeover bid that investors never thought had much chance of success. MAG claims that the turning point came when Fresnillo chose not to comply with an Ontario Securities Commission order to hand over information about the Juanicipio property, where the two companies have a joint venture.

BMO Capital Markets analyst John Hayes is wrote that the bid withdrawal is a positive

for MAG because it was acting as an overhang on the company’s share price. He calculated that the stock is trading at a 57% discount to his 0% net asset value estimate of $10.74 per share.

Complete Story »
Go to Source

More Information: