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.