Rob McEwen’s efforts to force a vote by Goldcorp (G-T, GG-N) shareholders on the proposed US$8.6-billion takeover of Glamis Gold (GLG-T, GLG-N) got a little support from the influential Ontario Teachers’ Pension Plan, which manages $96 billion in net assets.
On Friday, Teachers, which is one of Goldcorp’s largest shareholders, issued a release stating that the “share dilution that will result from mergers like that of Goldcorp Inc. and Glamis Gold should require shareholder approval.”
Teachers senior vice-president of public equities, Brian Gibson, stated that “this is a matter of principle for shareholders” and that “the number of shares being issued by Goldcorp to acquire Glamis is roughly 66% of the number of Goldcorp shares outstanding today. We think this is well beyond the level where shareholder input should be sought.”
McEwen’s private firm McEwen Capital has so far received 1,100 expressions of support representing Goldcorp shareholders holding over 27.0 million shares. McEwen says this includes four of Goldcorp’s 20 largest shareholders, in contrast to Goldcorp’s statement that McEwen was the only one out of a hundred top shareholders who had expressed opposition to the merger.
Meanwhile, McEwen is petitioning the Ontario Superior Court to force Goldcorp to hold a shareholder vote on the merger, something Goldcorp management is adamantly against. A ruling is expected this week.
Be the first to comment on "Teachers back McEwen"