Gediminas Jasionis
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Dundee Capital Markets Inc (TSE:DCM) (PINK:DCMZF) Stock Price Got Locked Awaiting Approval for Acquisition

by Gediminas Jasionis Dec 23, 2011
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dcm_chart.pngDundee Capital Markets Inc (TSE:DCM) (PINK:DCMZF) stock price became locked near a $1.125 level after the company entered into an acquisition agreement with Dundee Corporation, which has dictated the value of their business.

DCM had a trading volume of 5.34 million on Thursday as the share price gapped up 35.4%. The trading activity was far above the three month average of 254 thousand. This action is influenced by a news announcement thus the share price will be sticking near its current level for some time.

On December 21 DCM said the company entered into an agreement for Dundee Corporation, under which they will acquire the remaining part of outstanding DCM stock, which they don't already own. The acquisition price was set at $1.125 per share giving a substantial 40% premium over the average price at the time the agreement was made.

Dundee_Capital_Markets_Inc_logo.jpgThe transaction still has to be approved by shareholders, but clearly the price offered is very favorable. Showing an example The Back of Nova Scotia already agreed to vote its shares in favor. The bank holds 18% of DCM stock. A special meeting of shareholders will be held on January 31, 2012.

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