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Mining industry

Goldcorp Shareholders Demand Vote on Glamis Deal

Strategic Insights

— 1 min read

In a move that challenges Goldcorp's management, several shareholders, including Rob McEwen, the company's largest individual shareholder, are pushing for a vote on the proposed Plan of Arrangement with Glamis Gold. This decision comes in response to the Ontario Teachers' Pension Plan (OTPP), one of Goldcorp's largest shareholders, expressing concerns about the share dilution resulting from the merger. OTPP Senior Vice-President Brian Gibson emphasized that the number of shares being issued by Goldcorp to acquire Glamis is excessive and warrants shareholder input.

Key Takeaways:

  • Four of Goldcorp's top twenty shareholders, including Rob McEwen, want a vote on the Glamis deal and have publicly stated their opposition to the merger.
  • Rob McEwen's McEwen Capital has received over 1,100 Support Forms from Goldcorp shareholders holding more than 27.0 million shares.
  • The proposed Goldcorp and Glamis transaction has been criticized for its share dilution, with OTPP stating that the number of shares being issued by Goldcorp is roughly 66% of the company's shares outstanding.
  • McEwen Capital is advocating for Goldcorp shareholders to be given a vote on the Glamis deal and is challenging the company's management and Board to respect the rights of shareholders.
  • The Ontario Superior Court has been involved in the matter, with McEwen's Application for a Compliance Order requesting a vote for shareholders.
  • Rob McEwen has expressed his concerns about the lack of transparency and the decision-making process behind the Glamis deal.

Statistics:

  • Over 1,100 Support Forms have been received by McEwen Capital from Goldcorp shareholders.
  • The proposed Goldcorp and Glamis transaction involves the issuance of shares equivalent to 66% of Goldcorp's current shares outstanding.
  • Goldcorp shareholders holding over 27.0 million shares have expressed their opposition to the merger.
  • $8.6 billion is the value of the proposed investment in the Glamis deal.
  • Goldcorp's CEO has repeatedly stated that he has "talked to our 100 largest shareholders and we can't find one that wants a vote."

Sources:

  • October 20, 2006 news release from OTPP.
  • McEwen Capital copyright 2006 Market Wire.
  • Market Wire via COMTEX, October 23, 2006

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