Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Coeur d'Alene (NYSE:CDE) fell 10% today after the company offered to buy a Mexican silver miner.
So what: The company made a $383 million offer for Orko Silver, a competing bid from an offer by First Majestic Silver. The offer is for C$2.70 per share, a 26% premium to the competing offer, and it includes C$0.70 in cash, versus less than a penny in cash included in the First Majestic bid.
Now what: The only winner in this bidding war is Orko Silver's investors, who can watch these two companies fight over them. First Majestic can now respond with another bid or give up the asset to Coeur d'Alene. I don't think this is a reason to buy the stock here given the bidding war, which rarely works out for the acquiring company.
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