Euan's Feed
Apr 24, 2014

Barrick-Newmont make merger headway but divide remains: sources

By Euan Rocha, Nicole Mordant and Soyoung Kim

(Reuters) – The disagreements around the spin-out of certain assets that had snagged merger talks between Barrick Gold Corp (ABX.TO: Quote, Profile, Research, Stock Buzz) and its rival, Newmont Mining Corp (NEM.N: Quote, Profile, Research, Stock Buzz), have been resolved but talks are at a standstill for now, said three sources familiar with the matter on Wednesday.

There have been some talks between representatives of both companies since discussions broke down last Thursday, but high-level talks between executives from both sides have yet to resume, said the sources, who asked not to be named due to the sensitive nature of the discussions.

Apr 21, 2014

Barrick-Newmont union: is the third time the charm?

TORONTO/VANCOUVER, April 21 (Reuters) – Barrick Gold Corp
has tried and failed to buy Newmont Mining Corp
twice in the past decade, but the rationale is now more
compelling than ever for a merger between two of the world’s
largest gold miners.

The two companies have been weakened by massive asset
write-downs and the derailment of two vital growth projects in
Latin America in the last two years, as the price of gold has
slid 33 percent since peaking in 2011. These issues have led to
credit rating downgrades and forced both miners to sell some
assets.

Apr 21, 2014

Goldcorp bows out of bidding war for rival Canadian miner Osisko

TORONTO (Reuters) – Goldcorp Inc (G.TO: Quote, Profile, Research, Stock Buzz) said on Monday it is walking away from its hostile bid to buy Osisko Mining Corp (OSK.TO: Quote, Profile, Research, Stock Buzz), clearing the way for Yamana Gold Inc (YRI.TO: Quote, Profile, Research, Stock Buzz) and Agnico Eagle Mines Ltd (AEM.TO: Quote, Profile, Research, Stock Buzz) to take control of Osisko’s flagship Canadian Malartic mine.

The white-knight bid, which the companies valued at C$3.9 billion ($3.5 billion) when it was announced last week, would see Yamana and Agnico take joint control of most Osisko assets, and spin out some exploration properties into a new entity.

Apr 21, 2014

Barrick proposal to acquire Newmont hits roadblock: sources

TORONTO (Reuters) – The talks between Barrick Gold Corp (ABX.TO: Quote, Profile, Research, Stock Buzz) and Newmont Mining Corp (NEM.N: Quote, Profile, Research, Stock Buzz) over a combination that would create a gold mining behemoth have hit a snag, but two sources close to the situation say the companies remain keen on a deal and discussions are likely to resume.

The talks had been on for a few weeks and the two sides had broadly agreed to a transaction that would see Barrick acquire Denver-based Newmont in an all-stock deal, said one source close to the matter, adding that the deal would offer Newmont shareholders a slight premium to its current share price.

Apr 17, 2014

Proxy advisers split on miner Augusta’s takeover defense

TORONTO, April 17 (Reuters) – Two prominent proxy advisers
have split on whether shareholders should vote to maintain
Augusta Resource Corp’s shareholder rights plan, which
could thwart a hostile takeover bid from larger Canadian base
metals miner HudBay Minerals Inc.

Glass Lewis has advised its clients to vote to preserve the
plan, while rival Institutional Shareholder Services (ISS) has
come out against the plan. ISS also sharply criticized the
amount of severance that could be paid to Augusta’s chief
executive if HudBay’s bid succeeds.

Apr 16, 2014

Yamana, Agnico reach C$3.9 billion deal with Osisko to thwart Goldcorp takeover bid

TORONTO (Reuters) – Canada’s Osisko Mining Corp (OSK.TO: Quote, Profile, Research, Stock Buzz) said on Wednesday it has reached a C$3.9 billion ($3.6 billion) deal to sell most of its assets to Yamana Gold Inc (YRI.TO: Quote, Profile, Research, Stock Buzz) and Agnico Eagle Mines Ltd (AEM.TO: Quote, Profile, Research, Stock Buzz) as it battles to thwart a hostile takeover bid from Goldcorp Inc (G.TO: Quote, Profile, Research, Stock Buzz), one of the world’s biggest gold miners.

Osisko said the implied value of the new deal is C$8.15 a share, an 11 percent premium to the implied value of a sweetened offer that was announced by Goldcorp last week.

Apr 16, 2014

Yamana, Agnico reach new deal with Osisko to thwart Goldcorp takeover bid

TORONTO, April 16 (Reuters) – Canada’s Osisko Mining Corp
said on Wednesday it has reached a deal to sell most of
its assets to Yamana Gold Inc and Agnico Eagle Mines
Ltd as it battles to thwart a hostile takeover bid from
Goldcorp Inc, one of the world’s biggest gold miners.

Osisko said the implied value of the new deal is C$8.15 a
share, an 11 percent premium to the implied value of a sweetened
offer that was announced by Goldcorp last week.

Apr 16, 2014

Johnson Controls to buy Air Distribution Technologies for $1.6 billion

TORONTO (Reuters) – Johnson Controls Inc (JCI.N: Quote, Profile, Research, Stock Buzz) said on Wednesday it will acquire Air Distribution Technologies from Canada Pension Plan Investment Board (CPPIB) for $1.6 billion, in a move aimed at expanding its offerings in the ventilation products segment.

Milwaukee, Wisconsin-based Johnson Controls, which makes car interiors and batteries as well as heating, ventilation and cooling systems for buildings, said the acquisition reflects its commitment to invest in the buildings business as a growth platform.

Apr 15, 2014

BlackBerry buys minority stake in healthcare IT firm

TORONTO (Reuters) – BlackBerry Ltd said on Tuesday it bought a minority stake in privately held healthcare IT firm NantHealth, a move that offers a glimpse into the type of niche markets the smartphone maker is targeting as it attempts to engineer a turnaround.

Waterloo, Ontario-based BlackBerry, a pioneer in the smartphone industry, has fallen on hard times as its market share has waned in recent years. As the company attempts to stem losses and remain relevant it is now focused on expanding its services segment that caters to the needs of large clients like banks, law firms and government agencies, among others.

Apr 3, 2014

Scotiabank leads in quarterly Canadian M&A as resources rebound

TORONTO, April 3 (Reuters) – Bank of Nova Scotia
led investment banks in advising on mergers and acquisitions in
Canada and finished second in equity issues in a first quarter
that brought a rebound in overall activity in both categories
after a weaker 2013.

Driven by brisker activity in the energy and mining sectors,
the total value of M&A deals in the quarter rose by 20 percent
to US$35.7 billion from the first quarter of 2013, according to
data released by Thomson Reuters on Thursday.

    • About Euan

      "Euan Rocha covers mining and minerals in Canada, where he focuses on gold, base metals and fertilizer companies. Euan, who is currently based in Toronto, has previously worked with Reuters in the United States and India. While based in New York for four years, Euan headed the Reuters Alerts team, before moving on to cover the U.S. chemical industry. Euan began his career with Reuters in Bangalore, India in 2004."
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