Alamos wants it very badly that proves it must be a valuable property but Hecla gets a 27 Mil Breakup FEE !
Hecla is in a win win situation as they get a property the other company wants badly and if not they get 27 million breakup fee...
If the deal is not doen it will go over 5 easily !
WHITE KNIGHT OFFER
Hecla's C$4.75-per-share offer to acquire Aurizon represents a 9 percent premium to Aurizon's Friday close of C$4.35 on the Toronto Stock Exchange.
"It is a white knight offer. The advantage for Hecla is that it is a friendly offer. It is a superior offer on a cash basis -- $514 million versus Alamos's $305 million maximum cash component. In this market, I suppose, the more the cash the more certainty of the offer," analyst Steven Butler of Canaccord Genuity said.
Aurizon said last month it was in talks with a number of potential buyers.
"Given Hecla's premium offer as well as cash consideration, break fee and Hecla's right to match, we don't believe Alamos will make a counter-offer for Aurizon," analyst Dan Rollins of RBC Capital Markets said.
The agreement gives Hecla the right to match any competing offer and requires Aurizon to pay a termination fee of C$27.2 million.