Yamana backs Agnico-Pan American bid for Gold Fields bid

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(Bloomberg) — Yamana Gold Inc. said it has reached an agreement with Agnico Eagle Mines Ltd. and Pan American Silver Corp. after determining that their tender offer was superior to an earlier offer by Gold Fields Ltd.

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The company’s board “now unanimously recommends that Yamana shareholders vote against the Gold Fields transaction,” when they meet to vote on the deal on Nov. 21, Yamana said in a statement Tuesday. . The company entered into the arrangement agreement following Gold Fields’ waiver of its right to consideration for five business days, Yamana said.

Gold Fields said on Monday it would not raise its bid for Yamana after the two Canadian rivals teamed up in an unsolicited $4.8 billion bid aimed at breaking an earlier merger deal with the southern miner. African. Yamana previously said the cash and stock proposal announced Friday by Agnico Eagle and Pan American was “superior” to the Gold Fields deal reached in May. The latest trade is valued at $5.02 per share, based on Thursday’s closing prices.

Read: Yamana Takeover Battle Brews as Rivals Bid $4.8 Billion

Gold Fields said its investment committee will be convened and the company will provide a further update to shareholders on its transaction following that meeting, according to a statement on Tuesday.

U.S.-listed shares of Yamana were little changed at $4.87 at 9:35 a.m. New York, while Agnico Eagle and Pan American both fell 0.8%. Gold Fields shares lost their earlier gains in Johannesburg, down 0.6%.

The battle to acquire Toronto-based Yamana in the biggest gold deal of the year underscores pressure to increase production as costs soar and new deposits become harder to find. If their deal were to be terminated, Yamana would have to pay a $300 million severance fee to Gold Fields.

Under the competing proposal, Pan American would acquire Yamana, while Agnico Eagle would purchase Yamana’s Canadian assets.

(Adds a Gold Fields comment to the fourth paragraph.)

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