The Financial Post reports in its Tuesday edition that Kirkland Lake Gold boss Anthony Makuch says his company is not interested in raising or changing the offer it made last month to buy Detour Gold.
The Post's Gabriel Friedman writes that in November, Kirkland made an all-stock buyout that valued Detour at $27.50 a share or about $4.89-billion.
Both companies operate gold mines in Eastern Ontario, but have had starkly different trajectories. Kirkland operates two high grade underground mines, including one in Australia, that produce gold near the lowest costs in the sector, and has been one of the best performing stocks on the TSX.
Detour, which operates a single lower-grade, open pit mine, at some of the highest costs in the sector. Since the deal was announced, however, Kirkland's stock has declined by 15 per cent to $53.77 and Detour's stock has risen 9.5 per cent. Mr. Makuch says, "We have been the top performing company on the TSX in the past few years, so we don't see a need or a want to increase or change our offer to Detour shareholders."
He adds, "Fundamentally, this is a value creating transaction." National Bank's Mike Parkin says the market is signalling that Detour needs a better buyout offer.
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