Responding to Coeur d'Alene's (NYSE: CDE ) $383.3 million proposal to trump its bid for Orko Silver Corp. (UNKNOWN: OKOFF.DL ) , initial bidder First Majestic Silver (NYSE: AG ) announced yesterday that it may exercise its right to match Coeur's bid.
Under the terms of First Majestic's original offer to purchase Orko, First Majestic has five business days from receiving notice of Coeur d'Alene's offer to decide whether it wants to amend its purchase offer. An amended offer equal to or better than what Coeur has offered will obligate Orko to proceed with its sale to First Majestic, according to First Majestic.
If First Majestic declines to match Coeur's bid, then Orko has the right to go with Coeur -- in which case it must pay First Majestic an $11.6 million breakup fee.
At this time, First Majestic has not yet decided on its move, saying only that it "will keep the market apprised of further developments."