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[basserdan]

Goldcorp founder McEwen blasts successor Telfer

Dorothy Kosich
'26-SEP-06 07:00'

DENVER (Mineweb.com) --Goldcorp Founder Rob McEwen Monday fired a broadside at his successor Ian Telfer, accusing Telfer of dumping his Goldcorp shares shortly after he became President and CEO of the company.

During his luncheon address to the Denver Gold Forum, McEwen claimed Telfer believed that the friendly merger proposed in December 6, 2004, between Wheaton River and Goldcorp would fail, and that Glamis would claim victory in its December 16, 2004, hostile bid for Goldcorp.

Finally, McEwen accused Telfer of being unwilling to give Goldcorp's shareholders a vote in the merger between the two companies due to "unnecessary risk" to the deal.
McEwen claimed that Telfer began selling his Goldcorp shares within three months after becoming President and CEO of the company. Telfer was McEwen's handpicked successor for the job of running Goldcorp. He then asserted that Goldcorp's Board of Directors only own 0.01% of the company, and won't assume the risk of a recently proposed friendly merger with Glamis Gold.

When asked by Mineweb to comment about McEwen's allegations, Telfer was not yet prepared to respond as of Monday afternoon.

Telfer angered McEwen this month when Goldcorp announced a proposed friendly merger with Glamis, and refused to allow Goldcorp shareholders to have a vote on the matter. Meanwhile, Glamis shareholders will vote on the deal.

In fact, McEwen accused mining senior managers of gambling on mergers and acquisitions because "they have much less to lose than their shareholders" in these deals because of the managers’ "insignificant share ownership." He termed the "bigger is better trend" among mining companies "a classic line," asserting that major mining company earnings decline as production increase. A favorite claim by investment bankers and institutional investors that share prices only drop temporarily as the result of a takeover also rings hollow, according to McEwen.

“It’s time to load up, not sell,” he declared.

McEwen suggested that it is the responsibility of management in every public company to get out and get known in the investment community. Nevertheless, McEwen said miners tend to do a poor job in marketing the industry.

NEVADA IS THE PLACE

McEwen told the miners, analysts, institutional investors, and bankers attending the gold forum that he shopped worldwide before deciding to take a major position in Nevada’s Cortez/Battle Mountain Trend.

He chose Nevada because it lacked the turmoil of geopolitical issues which impact other mining jurisdictions. McEwen was also seeking mining prospects involving U.S. currency considerations.

However, McEwen joked that the State of Nevada is owned basically by two companies, Newmont and Barrick “and we’re sandwiched right in between.”

http://www.mineweb.net/gold_silver/212284.htm