Alamos Gold Inc. (TSX: T.AGI, Stock Forum) is asking the British Columbia Securities Commission to remove takeover target Aurizon Mines Ltd.’s (TSX: T.ARZ, Stock Forum) poison pill.
Alamos said on Tuesday it wants Aurizon’s new shareholder rights plan, as well as what it says is an “improper” break fee, to be ruled out by the B.C. regulator.
It did not provide details, but scheduled a conference call to explain the move. A hearing at the BCSC has been scheduled for March 15th, 2013, Alamos said in a press release.
Alamos said in a news release last week that a proposed $27.2 million break fee to Hecla Mining Co. (NYSE: HL, Stock Forum), in the event that Alamos raises its stake in Aurizon to about 33 percent, “may constitute an improper defensive tactic or be otherwise inconsistent with take-over bid law in Canada.”
Aurizon’s board said on Monday it has adopted the shareholder rights plan in a bid to prevent Alamos from using its voting clout to defeat a friendly takeover offer from Hecla Mining Co.
Last week, Hecla launched its bid for Aurizon with a superior offer to that of hostile bidder Alamos.
But Alamos claims that Hecla’s $4.75-per-share offer has only a marginally higher cash-per-share amount – 10 cents – than its own proposal and is generally an inferior bid that represents greater risk for Aurizon shareholders.
Alamos currently owns about 16% of Aurizon and wants to buy the rest of the company’s stock.
Alamos rose 1.3% to $14.75, leaving the company with a market cap of $1.9 billion, based on 127.5 million shares outstanding. The 52-week range is $20 and $13.32.
Aurizon rose 0.89% to $4.55, leaving the company with a market cap of $748.7 million, based on 164.6 million shares outstanding. The 52-week range is $5.55 and $3.15.