KWG Jumps 13% on Plans to remain in Spider's web; Spider unchanged

By Midnight Trader,  July 09, 2010, 01:27:52 PM EDT

KWG Resources Inc. (KWG.V) is up 13% after saying it will not tender its holdings of common shares in Spider Resources Inc. (SPQ.V) to the takeover offer made by a subsidiary of Cliffs Natural Resources Inc. Spider shares are unchanged at 18.5 cents.

KWG said in a statement based on the independent valuations it recently undertook, it has decided to retain its Spider shares until such time as Cliffs proceeds with its stated intention of acquiring the remainder of the Spider shares held by shareholders who do not accept the offer, pursuant to an amalgamation or other acquisition transaction or a statutory squeeze-out.

At that time, it added, KWG will have the statutory right to dissent and to demand to be paid, and to be paid, the fair value of its Spider shares, which KWG believes will exceed the 19 cents per share being offered by Cliffs.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Commodities

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