I wonder if some big major is sitting in the wings waiting for the merger to go through so it can pounce and buy the whole lot at a giveaway price. Even if the merger falls flat, either ECU or AUMN might be snatched away for pennies on the dollar. Perhaps? Take your pick.

Recently, I noticed a couple of recent posts discussing just that. First Majestic, FR/AG, is discussed as a potential buyer, FR/AG being a silver junior miner acting like a major ever since it began trading on the NYSE.

Here is the relevant portion of a post by pmguru-1, dated March 5th, from the AG Yahoo financial board followed by a portion of a note from one of the guys at Seeking Alpha, dated Aug 5th, who sounds as if he may not have heard of the merger .

If an ordinary poster is thinking this, perhaps some majors are thinking it too.

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AUMN/ECU silver merger

25-Jun-11 01:21 am

These guys will have 500M ozs silver-eq and growing fast and only 34M shares outstanding. The ECU silver has consistent 2-3 g/ton gold grades to go along with 5 oz/ton silver and a good bit of lead/zinc. AUMN has El Quevar w/ world class potential in Argentina and a decent cash hoard. The market cap of AUMN and ECU together is only $600M - less than a third AG's MC.

Would it make sense to buyout a combined AUMN/ECU a few months down the road if it continues to trade in this range? I think so, it could increase silver resources by over 100% - to nearly 1 bllion ozs total resource. Most silver producers are valued at $5-8 per oz and that would mean $5-8B market cap. That would put AG at $50-80 per share.

Also, AUMN/ECU could eventually produce 15-20M ozs of silver which would more than double AG production (even considering Del Toro!) All this at 1/3rd the price over at AUMN/ECU

I own a lot of AG and AUMN so not trying to blow smoke, I'm just saying all these companies have attractive valuations. AG could make $2-3 eps in 2 years even if silver went down in the 20s again. And if you don't want to buy it when it drops in the mid teens you are a retarded queer. $30-40 is a more reasonable 6-9 month price objective than $15-20 for AG imo. In 2013 I think AG shares will be worth Benjamins. Not sure how much gas will cost. Probably more than $3.27 lol.

Just like last year I looked at an ounce of silver and couldn't believe a $20 Andrew Jackson was "worth more" I now look at a share of AG with the same feeling. $35 AG once they demonstrate earnings power closer to $2 eps not current $1. That is AUTOMATIC with Del Toro even with silver price not going higher! Investors love certainty. So do I. AG is CERTAIN to be worth a lot more than $17 in 2 years.

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(From Seeking Alpha, Aug.5)

"One important point raised there is that AG may be less risky than other silver stocks due to the company’s strong production. Specifically, the company’s stable cash flows will help make it less volatile to future changes in the price of silver as well as other factors that affect this industry. AG could also be in the market to buy one of the smaller silver companies, notably Ecu Silver Mining (ECUXF.PK) or Cream Minerals (CRMXF.PK)."