The Globe and Mail reports in its Saturday, Jan. 18, edition that Kirkland Lake Gold is holding firm with its $4.9-billion all-stock bid for Detour Gold.
The Globe's Niall McGee writes that Kirkland offered 0.4343 of its own shares for each Detour share, a 24-per-cent premium to the Nov. 22 closing price.
Kirkland says its offer is "full and fair" and it is not going to budge.
Expectations have been for Kirkland to add a sweetener. Of late, shares in Detour consistently traded above Kirkland's offer, before dropping a few cents below it, on Friday.
When the deal was announced, Kirkland shares fell by 17 per cent, wiping out much of the paper premium, as investors worried about the merits of one of the world's most profitable miners buying a low-grade laggard.
Kirkland has repeatedly argued that the Detour acquisition will significantly add to its gold reserves. While Kirkland's marquee Fosterville mine in Australia has been a spectacular success in terms of grade, it has a short mine life.
Despite expressing some reservations, two proxy advisory firms, Institutional Shareholder Services Inc. and Glass, Lewis & Co. recommended last week that both Detour and Kirkland shareholders vote in favour.
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