Sorry people, I really hate putting question marks at the end of title lines, so many people do it way too often and it always comes across as cheesy and a cop-out. But in this case it’s necessary, because Kevin’s still mad at me. And there’s no way I’m not passing this chunk of decently sourced gossip onto you but you have to realize it’s that market chatter, no more or less.
So to matters and, from what this humble scribe’s desk has picked up, it seems that there’s a small-ish insto holding LSG shares that’s very against this deal. And it knows that it won’t be able to win enough support from others to vote down the deal come the EGM. And it knows that TAHO is giving it no upside at all from a crappy deal. And it’s pissed at Makuch, too. So what they’ve realized is that the trading on the afternoon of Friday February 5th, after the NR from LSG that day which responded to the IKN scoop on the deal and included…
“The Company is not aware of any material, undisclosed corporate developments that would account for recent trading in its stock.”
…may well mean that Makuch may well have been failing in his fiduciary duty towards shareholders, particularly those in the USA. And that means the people who sold to others on Friday afternoon…
…were done by bad info from the top. And if they file suit the whole M&A thing would at the very least be put on a very different timescale. At worst, it falls to bits.
Which is where we are today. My personal opinion is that a suit against this deal is perfectly possible, it would also have grounds (whatever TAHO or LSG might tell you) and that the insto involved isn’t just blowing smoke up my trasero by telling me all this. However and after due consideration I want to issue a word of caution: For one thing I’ve already sold all my LSG shares (as subscribers to The IKN Weekly know clearly (EDIT: I have no intention of buying back in again)), for another I have nothing at all to gain from posting this intel (no payment, no fringe benefits, nothing except for the pleasure of making the markets just a tiny bit more transparent for the general public) and for another (here comes something my intel droppers don’t want to read in this post) I’m aware I’m being used a little bit here. IMHO I think I’ve been tipped on this as part of a fishing expedition by this small fund to see if there are any other like-minded LSG holders out there. So keep that in mind. And give my love to Kevin, Ira. And don’t forget to disclose that November 2015 workplace death at Escobal in your year-end MD&A, yeah?