Ann: LGL rejects acquisition proposal from Newcre, page-26

re: Ann: LGL: LGL rejects acquisition proposa...
Lots of negative talk about the merger ATM. I don't share this at all - I think it is an excellent longer term acquisition. Enormous percentage increase of reserves & yearly production (to do the same percentage any other way would be almost impossible). Lihr's biggest problem was lack of faith in management and the fact it was a one mine share essentially & therefore continually trading at a discount. Lihr had attempted to be revalued by diversifying & changing management and of course didn't go so well. The mine in Newcrest's hands will lose it's poor risk & management profile, as well as propel NCm squarely into the major leagues (I think from memory this will give Newcrest the largest reserves of any company in the world, and way way above anything else in Australia) Newcrest's management get their fair share of critism (Telfer was a good example), but them have always come through. Always. Don't think this time will be any different.

Share price hold up very well considering, but needs to hold at or above 32.40. Otherwise it is back inside the large trading range it broke from at the beginning of March.

If it doesn't hold, not good short term, but this is a standout buyer longer term...