Dunn Group International

Dunn Group International

February 01, 2010 12:02 ET

Michael Bailey Makes Hostile Takeover Bid to Purchase Diamond Producer

OTTAWA, ONTARIO--(Marketwire - Feb. 1, 2010) - Michael Bailey and entities controlled by him announced today the commencement of a tender offer for all outstanding shares of common stock of Vaaldiam Resources Ltd. (TSE:VAA) for $0.07 per share, net to the seller in cash.

Under the terms of the tender offer, entities controlled by Michael Bailey will commence a hostile all cash bid to purchase all the outstanding shares of Vaaldiam for $0.07 USD per share for an aggregate purchase price of $19.265 million USD. This represents a 133% premium to the previous day closing price of Vaaldiam's stock.

The tender offer is scheduled to expire at 12:00 midnight, Eastern Standard Time, on March 1, 2010, unless the tender offer is extended. The tender offer is conditioned on the tender of a majority of Vaaldiam's shares calculated on a fully-diluted basis, as well as the receipt of certain regulatory approvals and other customary closing conditions.

Entities controlled by Michael Bailey currently own a minority stake in the company and they are now making a hostile bid to acquire 100% of the outstanding company stock with the intention of taking the company private. Michael Bailey is an algorithmic trader and formerly a member of the Band of Scoundrels, an elite group of high frequency proprietary traders that successfully shorted Citigroup and profited over $130M in October 2008.

The acquisition is expected to close during the first quarter of calendar year 2010; however, the close date is subject to customary closing conditions, including regulatory review in Canada.

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