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Show H. ;' Proposed Tonus of Merger Aro ' Mainly to Interest of ! Nevada Con. H , HfflAT IS WflY THE . TERMS ARE DOIOTED , &laJi Copper Is Main Loser, ; .. Wiiile Cumberland Ely S -r . Suffers Some. H' ( Western stockholders iu the Utah Cop- Hj f Jmcr .company afe inclined to doubt more joach da- the correctness of the proposed , 1 ijjJoifii as rcportt:d, by -which the Cop- H. per 5'.Mii)os company will gather unto "tself tho. Utah Copper, Nevada Cousoli-H Cousoli-H dalod and tho Cumberland Ely posses- isions. As reported, tho deal is to .uivo (Ihc Utah Copper, stockholders six shares B rbf stock for one: to pivo the Xovada -'Consolidated stockholders ttvo and a iialf shares for one. arid tho Cumberland Hj i 'Illy one and a half shares for one. Thai HT RUus -would -be decidedly unfair to the H jtni Copper stockholders (roes -without j "savinir.' and local stockholders are do- , in some inuring to emphasize the un-fairness. un-fairness. " Such a programme -would niter the , 'Utah Copper companv shares from 7r0(-'000', 7r0(-'000', par value, $7,500,000 to 4,500.000 B' shaTcs, par value !?22.00,000. The Utah K' .'Copper compnn with copper at 10 Hrt cents a pound, will earn on a production Hr -of 00.000,000 pounds of copper per an- Hft ' "mini Mho net sum of $4,800,000, or H yearly $0.50 per share. This is equal to d.Tper cent on the market price of $30 Hj1 cwhero it belongs, and for which level it was bound until the merger plans were . given out. This would bo an earning HBf , .of 05 per cent on the par value of the " stock. .1 lc is certain that for some time to yoma the Copper Mines company will , niot. be able to earn on more than 110.- , 00,000 pounds of copper per annum, v 'and at 10-ccnfc copper tho net earnings j Vl I or til0 'oar 'ould be $S,S00,000. or B j about 73 cents per shnro on the 12,000,- Bu ( l $00. This would give on tho six shares I J .fjaded in for one of the Utah Cop- . .1 per, $1.3S, nearly lo per cent on the 1 i ff-5 par value. As shown above, by go- jC umr it alone, the Utah Copper stock Hbm .j would earn ?6.50 per share under the V'l samo conditions. V !' "fc 1 he IvTcvada Consolidated company would be benefited greatly by this rc- ti :ported plan. Its 1,000,000 shares, par 4 rvalue 4-S,000,000, would be changed in- U 'tiivi.000,000 shares, par value 20,000,- H .000. This company will earn in tho B. noigbborhood of $2,-100,OOQ per annum. I , or .$1.50 per share, by producing. 30.- H 000,000 pounds of copper annualb, esti- f mating the metal at 10 cents. m This 1 -would be 0 cents on a market price of y $2C or 30 per cent on the par value. Kjs But ns shown above, under the merger p;'3j the Kovada Consolidated stockholders ' would get 73 cents per share, or for the I 2, shares of Copper Mines stock they L i, -vvoulfl get $1.S3 as against tho $J,50 K) )er share under separate operation. ' The Cumberland T.ly company's stock k . T.-31I be changed from 1,300,000. par f I value, $0,500,000 to 1,950.000 shares, f ' par value $0,750,000. By producing 20-. 000,000 pounds of copper annually, with the mewl at 10 cents a pound, t,ho Cum- LJ berland Ely by going it alone would j '.'arn net .$1,000,000. or $1.25 per share m' per ycuv. equal to S per cent on a mar- ' , ket value of $15. or 25 per cent on the 7irosent par value. Under the mergor, H- ; the. stock would earn 73 cents a -share. or $1.10 for tho 1 1 shares, which is nearly Jo per cent on a par value of $5. I Summary, t . Tn sum up. tho following facts are , i apparent: j ' 1. Tho Utah Copper company, under , such an arrangement, would furnish ) nearly 55 per cent or tho copper output. -and receive 37.5 per cent of the new B, ( company's stock. Tr would get in divi-B' divi-B' (lends '4.3S against $0.50 on ' its own Bj , operations. The new stock would have to reach $S.33 pr-r share to eoual $50 for .the old stock. The dividend of B. 73 ueuts per share would be less rjian V, 0 )er cent on the $S.33 per share'. BV . wherpas' the $0.50 per share on the old I Etoeic would be .13 per cent on $50 per )i rhafc..;; j . 2The N'evada Consolidated would H furnish about 27 per cent of the cop- H per output, or one-half of Utah Cop- H I per's -proportion, and would receive H : f.:; 1-3 per cent of the new stock. H I , almost as liiucli stock as the Utah Cop- HH per. It' would get in dividends $.1.83 HJ l ' against ..$1.50 per share on its own operations. 'J-he new stock Avould have l thWg9lo'$J0 por share to equal $25 for . fhe oldjtock. The dividend of 73 cents I fierkiiTp on the new slock would be a tjtilpwovr 7 per cent on $.10 per share: whereas the $1.50 per share on the old d;ock would be only 0 per cent On $25 per share. '3. The, Cumberland Ely would i'urnisli j trtinut 18 per cent of the cooper output, H,, would receive about 30 per cent K, i t of tho new. stock, a more evenly divid- R-, i gl 'trade, ft would get as dividends HM against $1.25 on its own opera- R , jons. The now stock would have to B, W to. $10 per share to equal $15 per B- share for the old stock. The dividend Hl' J ' " dents a share on the uew stock F ' 'jVould be a little over 7 per cent on ' $10; wiiereas tho $.1.25 per share on the HtC stock would bo over 8 per cent on t ' 15 pbr share. Hl' ) 4 The present par value of the throe ; shocks is $22,000,000, while the par vol-. K'-r RJ of the new stock as cxcliuncod for t t4ic old would be $52,250,000. The sup- H,'' i 4c,,rfefl valu'1 of the stocks, taking ITtah i Uoppcr at $30: Nevada ConsolidateiT at i ,U ",!5ir5, and Cumberland EIv at $15, R; f ,'ajnonnts io $07,000,000. If the new f Pl0Klt went to sfelO per share, therefore, r' I J? would be ;qual to $120,000,000 on a t; 1 Hrtpposed value of $07,000,000. On the Brf J Jyov? exchauge, tho Copper Mines com- vS. VMn- Avould have 12,000.000 sltares of I slock, of which 1,550,000 shares would W' 1 '5' res-rved for future needs, jv i is on such calculations as these H; V that Western stockholders do not like B' Tiu' sported urmi of the deal, to sav H'Hl nothing of-the fact ihat the Utah Bt' U lPPcr company is nearly to the ma-vi. i " of ita mil) eapneitv; while the EIv I VhI j-ropositions are practically a vcar be-' M hind this Utah companv. |