With a few days left before Goldcorp (G-T) shareholders meet to vote on a merger proposal with Wheaton River Minerals (WRM-T), Glamis Gold (GLG-T) has upped its offer for Goldcorp, if only a little.
Glamis is now offering 0.92 of a Glamis share for one of Goldcorp, up from a trade ratio of 0.89 in the original offer announced on Dec. 16. Glamis said the change represented a 61 (US49) addition to its bid, based on Glamis’s closing share price on Feb. 4.
Glamis said the formal bid would be mailed out on Feb. 9, requiring it to extend its deadline for tendering shares to the bid to Feb. 24 from Feb. 14.
The increase in the offer came on the heels of recommendations from at least two institutional proxy advisers, Fairvest and Glass Lewis, that Goldcorp shareholders vote for the Wheaton merger. Goldcorp management is seeking shareholder approval for its bid for Wheaton, which offers 0.25 Goldcorp shares for one Wheaton share, at a meeting on Feb. 10. The offer to Wheaton shareholders expires the following day.
Glamis has sought proxies from Goldcorp shareholders to vote against Goldcorp’s offer for Wheaton. Its own offer for Goldcorp is conditional on the abandonment of the bid.
Shares of all three companies involved in the merger fight declined in Monday trading. Glamis shares were at $20, down 50, effectively valuing its bid for Goldcorp at $18.40 per share. Goldcorp shares fell 39 to $17.00; and Wheaton shares were off 14 at $3.96.
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