Saturday, October 2, 2010

Some Capital Gold (CGC) ( shareholders are clearly pissed with the Gammon ( (GRS) deal

This is interesting. Thanks due to reader K for the headsup. IKN highlights in red and removes the AT sign from the howard's e-mail address (cos a day after getting it on a blog he'll be offered all sorts of pills and suction devices).

Law Offices of Howard G. Smith Announces Investigation On Behalf of Shareholders of Capital Gold Corporation in Connection with the Proposed Acquisition of the Company by Gammon Gold Inc.

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims against the board of directors of Capital Gold Corporation (“Capital Gold” or the “Company”) (AMEX:CGC) related to the Company’s agreement to be acquired by Gammon Gold Inc. (“Gammon”). The proposed transaction is valued at approximately $288 million.
Under the terms of the definitive merger agreement entered into by the parties, Gammon will acquire all of the outstanding common shares of Capital Gold for a cash payment of $0.79 and 0.5209 common shares of Gammon for each Capital Gold share. The proposed transaction implies a value of $4.57 per Capital Gold share, based on Gammon’s September 24, 2010 closing price on the NYSE. If the transaction is completed, it is expected that current Capital Gold shareholders will own approximately 20% of Gammon. The transaction is expected to close in late 2010. The investigation concerns possible breaches of fiduciary duty and other violations of law related to approval of the proposed transaction by Capital Gold’s board of directors.
If you are a shareholder of Capital Gold, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to howardsmit AT, or visit our website at