Good riddance: Iamgold rejected Wheaton; Golden Star pending
Iamgold rejects Wheaton merger deal
By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 7:06 PM ET July 6, 2004
SAN FRANCISCO (CBS.MW) -- Iamgold shareholders rejected a $1.8 billion merger with Wheaton River Minerals late Tuesday, Wheaton said.
Wheaton River said in a statement that it has cancelled its own shareholder vote on the deal.
Calls to Iamgold and Wheaton weren't immediately returned.
The decision from Iamgold comes just a week after Idaho-based Coeur d'Alene Mines (CDE: news, chart, profile) increased the value of its offer for Canadian miner Wheaton River Minerals and Golden Star Resources' (GSS: news, chart, profile) raised its bid for Iamgold. See full story.
The Iamgold and Wheaton merger agreement had called for swapping each outstanding share of Wheaton River for 0.55 shares of Iamgold. Based on Tuesday's closing price for U.S.-traded shares of Iamgold of $5.70 and Wheaton's 568 million shares outstanding, the transaction was worth around $1.8 billion.
Tuesday's rejection apparently clears the way for Coeur d'Alene to pursue its bid for Wheaton, and Golden Star to pursue its bid for Iamgold. Coeur d'Alene will pay Golden Star $26 million if both bids go through.
Coeur's latest revised offer in late June for Wheaton (WHT: news, chart, profile) (CA:WRM: news, chart, profile) was valued at around $1.96 billion, and Golden Star's raised bid for Iamgold was valued at about $981.2 million.
Ahead of the news Tuesday, U.S. listed shares of Iamgold (IAG: news, chart, profile) (CA:IMG: news, chart, profile) gained 10 cents to end the session at $5.70, while Wheaton shares fell 6 cents to close at $2.82. Coeur d'Alene stock closed down 11 cents at $4.16 and Golden Star rose 8 cents to close at $4.90 on Wall Street.
Late Tuesday Coeur d'Alene reiterated its call for the Wheaton River board to enter merger talks with it. "We are pleased with today's outcome and we are encouraged by the strong support we continue to receive from Wheaton River shareholders for our offer," said Dennis E. Wheeler, CEO or Coeur d'Alene in a statement.
Coeur is preparing filings for U.S. and Canadian authorities necessary to take its tender offer directly to Wheaton River shareholders, the company said in its statement.
CIBC World Markets and JP Morgan are advising Coeur on the bid, the company said.
Myra P. Saefong is a reporter for CBS.MarketWatch.com in San Francisco.
