The Globe and Mail reports in its Saturday, March 23, edition that several
Newmont Mining shareholders have panned the miner's $10-billion (U.S.) takeover bid for Goldcorp.
The Globe's Niall McGee and Rachelle Younglai write that VanEck manager Joe Foster says concerns raised by New York hedge fund Paulson & Co. that Newmont is overpaying for Goldcorp have merit. Mr. Foster agrees with Paulson that Newmont is overpaying for Goldcorp. British Columbia Investment Management voiced its opposition to a recent pay package announced for outgoing Goldcorp chairman Ian Telfer, saying it intends to vote against the acquisition of Goldcorp partly because of the "egregious payout."
Last week, Paulson argued that Newmont is paying about 23 per cent too much for Goldcorp, especially considering that Newmont has only increased in value since it recently announced a joint-venture agreement with Barrick Gold.
Mr. Foster says, "The JV was not factored into the Goldcorp Newmont price." VanEck is Goldcorp's biggest shareholder and Newmont's third biggest.
Desjardins analyst Josh Wolfson says Newmont could appease its discontented shareholders by paying out a special dividend before the Goldcorp transaction closes.
© 2024 Canjex Publishing Ltd. All rights reserved.