The Globe and Mail reports in its Tuesday edition that U.S.-traded Royal Gold's share price sank on Monday after the Denver company announced friendly takeover bids for Sandstorm Gold and Horizon Copper in a $5-billion transaction that will create one of North America's largest gold royalty companies. The Globe's Andrew Willis writes that early Monday, Royal announced a $3.5-billion (U.S.), all-share bid for Sandstorm and a separate $196-million cash bid for Horizon, both of which are based in Vancouver. Sandstorm is the largest shareholder in Horizon, with a 34-per-cent interest. Royal's share price dropped sharply on news of the takeover, closing Monday down 6 per cent on Nasdaq. Sandstorm's share price rose 6 per cent in Toronto, and Horizon shares jumped by 67 per cent. In recent years, numerous gold companies have seen their share prices drop after announcing takeovers, on investor concerns that the buyer has overpaid. "Royal Gold outlined the transaction would be accretive to net asset value and dilutive to its operating metrics," RBC analyst Josh Wolfson said in a report. "Our take is this will be viewed as slightly negative to Royal Gold. The transactions give Royal significantly more geographic diversity."