Lake Shore (LSG.to) (LSG) has done approx 4X average daily volume on its main Canadian ticker this morning and in the process has held onto its price gains of Friday while all around it wilt.
There are two theories doing the rounds, this desk one of many place to have heard the same:
1) That GG is interested in buying out LSG has been an open secret for many months (and hey, full disclosure, it’s one of the basic reasons I’m long LSG).
2) Chuck leaving and Garofalo entering means that Chuck will want to seal his deal before exit.
3) Chuck leaving and Garofalo entering means the other possible deal, that of the much larger Detour acquisition, is now off the table because the new boy won’t want to bite at that big a cherry early in his tenure.
And that’s about the size of it, thus LSG gets a new influx of buyers today.