Today, hundreds of thousands of IMG were traded. I am puzzled by this. Where are those shares from? were they bought in the last a couple of days? They were sold now so that a small profit could be made? That does not make sense to me. Can anybody explain? Thanks.
Arbitrage - Sell Iamgold at todays price and buy Wheaton Minerals - after the merger you will get back more Iamgold shares than you sold. There is always the risk that Iamgold shareholders will vote down the merger - requires 50% approval - in which case these people might just lose plenty. Iamgold could pay the non-completion penalty easily.