Thursday, August 31, 2006

Goldcorp and Glamis Gold to wed!

Merger mania continues this morning with the latest shocker, Goldcorp and Glamis. This is one combo that nobody had anticipated, packing all the more punch!

Goldcorp Buying Glamis

By TSC Staff
8/31/2006 7:00 AM EDT

Goldcorp (GG - commentary - Cramer's Take) agreed to buy Glamis (GLG - commentary - Cramer's Take) for $8.6 billion in stock in a matchup of Canadian gold miners. Vancouver, B.C.-based Goldcorp will issue 1.69 shares for each share of Toronto-based Glamis. Goldcorp said the deal gives Glamis holders a 33% premium to Wednesday's closing prices.

The new company will be called Goldcorp and will be 40% owned by Glamis shareholders. Glamis agreed to pay a $215 million breakup fee and to give Goldcorp the right to match offers.

The news comes as the recent surge in commodity prices fuels a wave of mining industry consolidation, with players like Inco (N - commentary - Cramer's Take) and Falconbridge receiving multiple buyout bids.

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