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Newmont Mining has offered a special dividend to its shareholders to get approval for its next takeover of the $ 10 billion Goldcorp Canadian Gold Mine, following the public opposition of two major investors.
Newmont said its major shareholders had made it clear that they wanted to reap the benefits of a recent joint venture announcement with Barrick Gold in Nevada rather than Goldcorp's shareholders.
Last week, New York hedge fund Paulson & Co and fund management group Van Eck announced that they would not support the Goldcorp transaction if the agreed premium of 17% was not eliminated.
"We are pleased to pay this special dividend to Newmont's current shareholders, in recognition of the potential synergy value of the joint venture agreement with Nevada," said Gary Goldberg, Newmont's chief executive officer. "We have continued to engage with and listen to our shareholders, and we are pleased that many of our largest shareholders have expressed their support for the Goldcorp merger."
The dividend of 88 cents per share will be paid to all Newmont shareholders as of April 17. It is subject to shareholder approval of the Goldcorp transaction next month. It will be paid on May 1, said Newmont.
A spokesman for Paulson & Co said that they "are currently evaluating the announcement".
Newmont resisted Barrick Gold's hostile takeover attempt this month by agreeing to form a joint venture with the Canadian miner in Nevada, where they both have major operations.
Barrick had attempted to take control of Newmont and thwart his Goldcorp acquisition project.
Formerly the largest gold producer in the world, Vancouver-based Goldcorp has struggled in recent years as its shares have fallen more than 70% since 2011.
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