02/14/2013 02:23 EST | Updated 04/16/2013 05:12 EDT

First Majestic bides time after Coeur d'Alene makes rival bid for Orko Silver

VANCOUVER - First Majestic Silver Corp. (TSX:FR) says it's considering whether to match the $382-million rival offer for Orko Silver Corp. (TSXV:OK) from U.S.-based Coeur d'Alene Mines Corp.

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.