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Commodities & Metals

A Gold Merger Fight for the Holidays (GG)

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By Douglas A. McIntyre Updated Published
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With gold up over $1,000.00 per ounce and with many pundits looking for much higher prices into 2010 and beyond, it has been a bit of a wonder where the gold mergers have been.  This morning came an announcement from Goldcorp Inc. (NYSE: GG) that it has delivered to Canplats Resources Corporation an amendment to Goldcorp’s proposal to acquire all of the issued and outstanding shares of Canplats that matches the proposal made on December 21, 2009 by Minera Penmont S. de R.L. de C.V.

Goldcorp has offered to pay C$4.40 per share, with C$4.20 in cash plus shares of a newly formed company for Canplats’ exploration properties. There had already been speculation that the offer would be matched, and now that is coming to fruition.

Since Goldcorp has matched the Penmont merger proposal, the company said that Canplats must enter into an agreement with Goldcorp to reflect the amended terms of the transaction and must recommend that the Canplats shareholders approve the business combination with Goldcorp.

The deal was set at $228 million.  The problem with today’s news is that Canplats already issued a statement earlier this week that the Penmont offer is a superior proposal.  If things go the same way in Canada as in the U.S. and elsewhere, then this sets the stage for what might be a bidding war.

JON C. OGG

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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