Watch the market in AOR today

Placer Dome's shares fell by arouind $1.00 on the Canadian market overnight.

This, on the surface, might seem a negative for AOR's share price since the takover bid is based on the receipt of Placer Dome shares.

However, any drop in AOR share price below $3.50 (if indeeed it occurs) may be very temporary and may represent a buying opportunity.

One has to ask why the Canadian market discounted Placer Dome's share price following its bid for Aurion.

I would argue that, given the Normandy saga, the fear is that a bidding war for Aurion will emerge and, Placer Dome will be forced to up its bid significantly to attain its prize.

So ... don't be surprised if a rival bid emerges sometime within the next few weeks.

And expect some volatility in AOR's share price.

My bet is that there could be some temporary weakness before the fireworks really start on this one.

Just my views ..... I will hold my AOR ... good luck to all.

Cheers.