The Globe and Mail reports in its Wednesday, April 10, edition that according to Desjardins Securities analyst John Sclodnick, Karora Resources' proposed merger with Westgold Resources of Australia is a good move for shareholders. The Globe's David Leeder writes in the Eye On Equities column that Mr. Sclodnick says this deal will offer them an immediate premium, as well as continued material exposure to half of the combined company. He says shareholders will be able to participate in the resource growth and exploration potential on the properties. Mr. Sclodnick moved his recommendation for Karora to "tender" from "buy" and his share target to $5.90 from $6.40. Analysts on average target the shares at $6.75. Mr. Sclodnick says in a note: "When rumours of a transaction were confirmed, we had thought there was room for a potential premium of 30 per cent but were concerned that a merger of equals might not offer a premium; we are thus very pleased to see both a premium of 25 per cent to the companies' 20-day VWAP [volume-weighted average price]. ... We were surprised to see the shares trade below the deal price. Perhaps some investors [were] simply buying on the confirmed rumours and then selling on the news."