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Re: rossi post# 2432

Monday, 09/18/2006 2:06:15 AM

Monday, September 18, 2006 2:06:15 AM

Post# of 12836
Hi Rossi!

I do not follow the logic of that post off SH. By making the cash more appealling, FR would not save a penny. They would be paying out a cash settlement for the shares to complete the acquisition. If more shareholders decide to settle for cash that would be unfavourable to FR, in my opinion. I think they would rather issue shares, since the FR float is still very tight anyway. Either way, the terms of the deal have not changed. The amount of shares or the amount of cash that FR ends up paying out will be exactly the same as before the stock plunged. Not one net penny will be saved.

I think there are many conspiracies going on in the PM sector, but I am certain that FR did not engineer this news just to trip up their own share price. The news had to come out one way or another and the merging of the two companies was announced months ago. If FR had surpressed the news until after the deal closed, then I could predict that lawsuits would have been the result.

I doubt the current slump in share price is anything more than an over reaction by skittish shareholders, and in hindsight it will probably just be a great buying opp.

cheers!

COACH247

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