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Mining industry

Goldcorp Takeover Bid by Glamis Gold Complicates Wheaton Merger Plans

Strategic Insights

— 2 min read

Glamis Gold's surprise takeover bid for Goldcorp Inc. has sent Goldcorp's shares soaring 12% on Thursday as investors weigh the potential benefits of the deal. Meanwhile, Goldcorp was actively pursuing a friendly merger with Wheaton River Minerals Ltd. just weeks prior to the takeover bid. The move is expected to derail Goldcorp's plans to acquire Wheaton, which is valued at $2.5 billion.

Key Takeaways:

  • Glamis Gold Ltd. has offered 0.89 of a Glamis common share for each Goldcorp share in a takeover bid.
  • Goldcorp's board members knew about Glamis' plans for weeks before the bid was announced.
  • Goldcorp had been actively pursuing a friendly merger with Wheaton River Minerals Ltd. just weeks prior to the takeover bid.
  • The takeover bid is expected to derail Goldcorp's plans to acquire Wheaton, which is valued at $2.5 billion.
  • Spot palladium prices are vulnerable to a slide to $150 an ounce over the coming weeks, industry analysts say.
  • Barrick Gold Corp.'s Alto Chicama project in northern Peru is over 60% complete, with the first gold pour expected in the third quarter of 2005.
  • Minera Yanacocha SRL expects to reach its production target of about 3.0 million ounces of gold this year.
  • South Africa's gold output is set to fall below 350 metric tons this year, the lowest level since 1947.
  • Coeur d'Alene Mines Corp. will proceed with construction of its San Bartolome silver mine project in Bolivia.
  • Galahad Gold Plc's Northern Dynasty Minerals Limited has announced the final assay results from the Pebble gold-copper-molybdenum deposit in Southwest Alaska.
  • Industrias Penoles SA of Mexico has received a $155 million syndicated loan through one of its mining units.
  • Harmony Gold Mining Co. and Gold Fields Ltd. executives are set to meet with Norilsk Nickel Mining and Metallurgical representatives in Russia.

Statistics:

  • Glamis Gold Ltd.'s takeover bid for Goldcorp is valued at $2.5 billion (Source: Dow Jones).
  • Spot palladium is vulnerable to a slide to $150 an ounce over the coming weeks (Source: Dow Jones).
  • Goldcorp's shares are up 12% (Source: Dow Jones).
  • South Africa's gold output is expected to fall below 350 metric tons this year (Source: Dow Jones).
  • Barrick Gold Corp.'s Alto Chicama project is over 60% complete (Source: Dow Jones).
  • Minera Yanacocha SRL expects to reach its production target of about 3.0 million ounces of gold this year (Source: Dow Jones).
  • Coeur d'Alene Mines Corp. will proceed with construction of its San Bartolome silver mine project in Bolivia (Source: Dow Jones).
  • Industrias Penoles SA of Mexico has received a $155 million syndicated loan (Source: Dow Jones).

Sources:

  • Dow Jones Newswires; (4420) 7842 9412; metals@dowjones.com News Provided by COMTEX (http://www.comtexnews.com)
  • COMTEX (http://www.comtexnews.com)
  • Dow Jones via COMTEX
  • ODJ via COMTEX

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