The Financial Post reports in its Wednesday, Oct. 7, edition that stock promoter Lukas Lundin has joined an effort to convince Fission Uranium's skeptical retail shareholders that they should approve a friendly merger with Denison Mines.
The Post's Peter Koven writes that the shareholder vote is slated for Oct. 14. Executives at both companies concede they do not know which way Fission's investors will go. The vast majority of the stock is held by retail shareholders, some of whom are loudly resisting the deal with Denison, one of Mr. Lundin's companies.
As a result, Mr. Lundin is speaking with retail investors in Toronto this week to make the case for the $280-million, all-stock deal. For him, the argument is simple.
"We're trying to become the go-to name in the industry. When uranium moves up again, we should move quite strongly because there's nowhere else (for investors) to go. You have Cameco and Denison."
Fission chief executive officer Dev Randhawa appreciates that retail investors would prefer a monster takeover offer from Cameco or Areva to this smaller deal with Denison. However, he thinks shareholders are ignoring the glaring fact that there is no such deal out there.
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