Golden Star Resources (GSC-T) has increased its bid for Iamgold (IMN-T) following a recommendation by independent Iamgold directors that shareholders should vote in favour of a competing merger deal with Wheaton River Minerals (WRM-T).
Golden Star, which had offered 1.15 of its shares for one Iamgold share, has kicked in US$56 million in cash and increased its share-trade ratio. The bid, formerly all-paper, now offers either 1.25 Golden Star shares for one Iamgold, or 1.15 shares plus 50.
A committee of independent Iamgold directors delivered an opinion on June 23 that the earlier Golden Star offer was inadequate, and recommended that shareholders vote for a friendly deal with Wheaton.
Iamgold and Wheaton had previously reached an agreement to merge, with Wheaton shareholders receiving 0.55 of an Iamgold share for one Wheaton share. Votes on that arrangement were originally scheduled for June 8, but Iamgold was forced to postpone its shareholder meeting by a court order obtained by Golden Star. Wheaton subsequently said it would allow a second vote on the deal, which had been approved at its June 8 meeting.
Wheaton shareholders have a competing bid from Coeur d’Alene Mines (CDE-N), which offers 0.731 of a Coeur share for one Wheaton share, or a combination of cash and shares with a maximum $1 per share, and a minimum of 0.577 of a share of Coeur.
On Monday, Iamgold shares closed at $7.46 and Wheaton shares at $3.76. Coeur shares closed at US$4.14 ($5.59), implying values of $4.09 for the Coeur bid and $4.10 for the Iamgold bid. Golden Star shares closed at $6.33, which imputed a value of $7.91 for the revised Golden Star bid.