Tuesday, June 05, 2007

Merger Mania in Uranium Space

Well one of the Uranium Index companies is going to be bought out.
Canadian uranium explorer and developer sxr Uranium One Inc. agreed to
buy Energy Metals Corp. in an all-stock deal valued at about $1.7 billion, fully
diluted, the companies said on Monday.

The price paid is $17.84 a share which was only a little higher then where the stock was trading when the deal was announced on Monday. This could mean that Uranium producers are fairly valued in the marketplace. It would have been nice if they had a 30% premium or something but oh well.

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