For all of you who have been waiting with baited breath you can take a Certs now. Xstrata (XTA) has made an all cash bid for Falconbridge Ltd (FAL) of CAD$52.5 per share. This is higher than Inco's (N) bid for Falconbridge and is all cash, which is often favored by investors. It is lower than the price FAL closed at yesterday CAD$54.00.
The management of FAL quickly responded to reports of the offer (which they haven't seen yet). The bottom line; management doesn't like it. The offer isn't for enough money. It is for all cash so FAL shareholders can't participate going forward in the benefits of the combined entity (which is bunk because they can always buy shares of XTA after the merger if they like it.)
The stock market is betting that Inco or someone else will make a new offer for FAL above the XTA offer. Are we in for a bidding war? Stay tuned!
Now go out and make some money (or as my friend Granger told me earlier today, "Now go out and have lunch!")
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