UPDATE: Silvercorp Up 8% As Pushes On With Shr Repurchase Plan; CEO Fears Co Now Vulnerable To Takeover
Silvercorp Metals (SVM.TO), caught in a maelstrom of anonymous fraud allegations, was up 8% and had touched a day high $7.11 with more than 3.2 million shares traded late in Thursday's session after saying earlier it is pushing ahead with a share repurchase plan, and paying an average $7.97 a share in the buyback.
In other news, Chief Executive Officer Rui Feng said Silvercorp Metals, the Canadian miner accused of fraud in two anonymous reports, may be vulnerable to a takeover after its shares declined.
"I'm worried our company will now become the target of a takeover," Feng reportedly said today, according to a Bloomberg report. "I'm very concerned because compared to our peers, our stock should be $15 to $16. Now we are about $6 and people may take advantage of the situation."
Bloomberg said its shares have dropped 21% this month. Silvercorp, which describes itself as China's largest silver miner, denies the allegations and says it's the victim of a group of short sellers who are trying to drive the shares lower.
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