The sometimes nasty takeover battle between Coeur d’Alene Mines (CDE-N) and Wheaton River Minerals (WRM-T) has come to an anticlimactic end with Coeur simply planning to let its tender offer expire on Sept. 30.
Coeur unfurled the white flag after it decided that its offer would not get the required two-thirds of Wheaton’s outstanding shares. Coeur also said it would “promptly” return any shares tendered once the offer formally lapses.
“Further increasing the consideration payable under the present offer terms would not be in the best interest of our Coeur shareholders,” said Coeur’s chief executive Dennis Wheeler in a prepared statement.
The company has also postponed indefinitely its special shareholders meeting slated for Sep. 30; shareholders were scheduled to vote on a reorganization plan and share issuance required to complete the planned acquisition.
Meanwhile, Wheeler said construction decisions at the San Bartolome silver project in Bolivia and Kensington gold project in Alaska would be made by the end of the year.
“In addition, we remain focused on reducing costs at our existing operations and pursuing both internal and select external growth opportunities,” he added.
In a subsequent press release, Wheaton announced that it had received a US$86-million cash distribution from its 37.5% stake in the Alumbrera gold-copper mine in Argentina. Since picking up the stake in March 2003, for US$270 million, Wheaton has received US$132 million in cash distribution and its US$91 million share of project debt has been repaid.
“This represents an 83% return on Wheaton’s investment in Alumbrera of US$270 million, in a period of 18 months,” said Wheaton’s CEO Ian Telfer. “By any measure, this represents a phenomenal return.”
The statement made no mention of Coeur’s surrender.
Be the first to comment on "Coeur waves the white flag"