Placer/Dome merger plan comes under Giant fire

Somebody is trying to throw a monkey wrench into Placer Development’s plans to merge with Dome Mines and Campbell Red Lake — and ironically it’s a former Placer executive.

Out of the blue, Pamour Inc. of Toronto has offered $417 million for a 19.99% stake in Dome which could presumably scuttle the merger plan.

What’s really intriguing about the offer is the fact that Pamour and its controlling shareholder, Giant Resources of Australia, have the same chairman — Robert Needham. He was also managing director of Placer Pacific but left with several other senior executives in a major shakeout at the Sydney office some time ago.

Mr Needham’s management style was rumored to have been a source of considerable tension between the Australian and Canadian offices. To make a football analogy, which many Australians love to do, the difference in style was like “comparing Canadian and Aussie football rules.”

Although Placer denies it, rumors abound that the company was a possible takeover target and many thought its suitor could have been Australian. The scuttling of the merger would leave Placer vulnerable once again and open to such a takeover, industry sources agree.

The purchase of Dome shares would have been financed by Giant on a non-recourse basis and the deal would have had to close before the three merger candidates hold meetings Aug 12. The offer of $21.50 per share would come through Pamour subsidiary Giant Yellowknife Mines and it’s understood there will be no follow-up offer to other shareholders.