Agnico Eagle Mines Ltd (AEM)

[Sam Dan]

[b2015-01-19 07:30 CT - In the News]
The Financial Post reports in its Saturday edition on April 16, Yamana, Osisko and Agnico Eagle reached a deal: Osisko would be jointly acquired for $8.15 a share ($3.9-billion in total) payable in cash and stock. The Post's Barry Critchley, writing in Off the Record, says last week Yamana Gold priced a $260-million equity offering via the sale of 49.1 million shares at $5.30 a share. It is the largest equity financing this year. Yamana may not have been in this position had it not provided an opening to Agnico Eagle, a potential suitor, which had been frozen out of buying shares of Osisko because of an earlier confidentiality and standstill agreement it reached with the Quebec company. At least that is the interpretation provided by one of Agnico Eagle's advisers at a governance summit held Thursday in Toronto. On Jan. 14, 2014, Goldcorp launched its hostile offer for Osisko at $5.95 a share, but relations between Goldcorp and Osisko deteriorated quickly. In early April, Agnico Eagle snared its break when Yamana and Osisko reached a deal. Given that Agnico has not raised equity capital since the acquisition, there is a question about the value of standstill agreements that exclude obvious potential buyers.