RE:Gold Fields says it will not make new offer for Yamana Yamana Gold Inc. was flat after the board of South Africa’s Gold Fields said on Monday it will not change its offer after a surprise rival bid from Agnico Eagle and Pan American.
Gold Fields’ decision reflects “commitment to capital discipline” and to fairness for shareholders in Gold Fields and Yamana, the South Africa-listed miner said on Monday.
The joint cash and stock offer from Agnico Eagle and Pan American on Friday trumped the Gold Fields bid, which valued Yamana at around $4.2-billion at Thursday’s close. Under the offer, Yamana shareholders would receive $1.0406 in cash, 0.0376 of an Agnico share and 0.1598 of a Pan American share for each share held.
“We do not believe GFI (Gold Fields) is looking to acquire Yamana at all costs despite the strategic rationale,” Investec analysts wrote in a note.
If Gold Fields matches the Agnico/Pan American offer, it would raise the risk the company would not win the necessary backing of 75 per cent of shareholders, the analysts said.