Dryblower on the mega-merger which may not be as successful as promoters believe

BIG bets are being placed on the merger of Barrick Gold and Randgold being a success, but in Dryblower’s world small gold stocks are more likely to deliver big profits, with a break-up of Barrick making more sense than a merger.

Dryblower on the mega-merger which may not be as successful as promoters believe Dryblower on the mega-merger which may not be as successful as promoters believe Dryblower on the mega-merger which may not be as successful as promoters believe Dryblower on the mega-merger which may not be as successful as promoters believe Dryblower on the mega-merger which may not be as successful as promoters believe

Since it was announced two weeks ago the share prices of both Barrick and Randgold have risen by 9.5% as investors pile into both stocks, with the uniform rise explained by the deal being promoted as a "nil-premium merger".

What's particularly impressive about the share price increases is that they have occurred as the gold price has risen by US$5 an ounce, or 0.4%.

That difference between the stock prices and the gold price is one measure of how much value investors expect to get from a merged business.

Perhaps they will, in the short term, as the Randgold boss, Mark Bristow, forges one company out of two, though it could be a case of the marriage of Barrick and Randgold being a case of trying to make a right out of two wrongs.

What that means is that...