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Hathor May Have Trouble Finding White Knight To Rescue It From Cameco: report

Hathor Exploration (HAT.TO) might have trouble finding a white knight to rescue it from the clutches of Cameco Corp (CCO.TO), the uranium giant whose $520 million hostile offer stands a much better chance of succeeding than any foreign bid, Reuters reported.

Cameco, Canada's largest uranium producer, faces none of the hurdles that a non-Canadian company would have to clear in acquiring a strategic asset such as Hathor, it said. Only last year, Canada's federal government shot down a $39 billion Anglo-Australian bid for Potash Corp (POT.TO), the world's largest fertilizer producer, it added.

"That's a calculation that is likely to give any rival bidder pause. Even so, Hathor's share price has shot higher since Cameco's bid was made public late last month, suggesting investors believe a sweeter offer may emerge."

Cameco's $3.75 a share offer also makes a lot of economic sense, a second big deterrent to a rival bid, Reuters said. It is one of the few uranium producers with an established mill in the Athabasca Basin, a uranium rich area in northern Saskatchewan. Hathor's flagship Roughrider project is located there, it added.

"The best bet for Hathor is whoever is going to pay the most. Is that going to be Cameco? Difficult to say, but I also find it hard to see other bidders emerging," BMO Capital Markets analyst Edward Sterck reportedly said.

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

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

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