Under a friendly deal in December, Vancouver-based First Majestic will receive an $11.6-million break fee if Orko accepts a superior offer. First Majestic also has the right to match a superior offer within five days of notification.
Orko is a junior exploration company focused on silver properties in Mexico, one of the countries where First Majestic also operates.
Orko announced Wednesday that Coeur d'Alene (NYSE:CDE) is offering cash and shares with an implied value of C$2.70 per share — 25 per cent above the value of Majestic's offer based on Feb. 12 closing stock prices.
First Majestic's offer had initially been valued at C$2.72 per share when it was announced on Dec. 16 but since then the company's stock price has fallen, reducing the value of the bid to about $2.16 as of Tuesday.
"First Majestic is considering its position with respect to the Coeur Proposal and its matching right and will keep the market apprised of further development," the Vancouver-based company said Thursday.
Its shares were down a further 42 cents or two per cent on Thursday, dropping to $17.75 on the Toronto Stock Exchange as of mid-afternoon.
On the TSX Venture Exchange, Orko's stock gave back some of Wednesday's gains, down a penny at $2.59 but still up from $2.14 Tuesday before the Coeur offer was announced.
Coeur shares were up 51 cents or 2.42 per cent at US$21.57 on Thursday, but still down from $23.49 prior to the Tuesday close on the New York Stock Exchange.