While he isn’t opposed to a merger with Australia-based Dominion, Whim’s chief executive officer George Harding, called the $220- million offer totally inadequate. “None of your directors intends to accept the Dominion offer for his own shareholding,” he said in a letter to shareholders.
Under a revised offer made through a subsidiary, Dominion Mining is bidding nine Dominion shares for every five Whim or eight Dominion shares and $1.25 cash for every five Whim Creek shares.
It comes at a time when Whim Creek, which expects to produce 200,000 oz gold this year, is attempting to unravel its complicated corporate structure.
Dominion Chairman Peter Joseph responded to the Whim statement by saying that the takeover offer would not be improved. “It is now up to shareholders to decide,” he told The Sydney Morning Herald.
As reported (N.M., Feb 27/89), Dominion recently acquired a 19.9% stake in Whim Creek after it paid $2.80 a share for the 15% combined interest previously held by Toronto-based affiliates Northgate Exploration (TSE) and Westfield Minerals (TSE).
The Whim Creek directors have declared an ordinary annual dividend of 10 cents per share, based on a $18 million (20 cents per share) consolidated profit reported for the year ended Dec 31, 1988.
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