Another Intra-Watch List Merger (Goldcorp/Glamis)

Can we pick em or what? Hot on the heels of the Valassis/Advo merger of two companies that were both on our Watch List, we get another intra-list merger, this one in the basic materials sector.

Goldcorp to buy Glamis for about $8.6 billion: Financial News – Yahoo! Finance

Canada’s Goldcorp Inc. (TSX:G.TO – News) said on Thursday it will acquire U.S.-based Glamis Gold Ltd. for about US$8.6 billion in stock, a deal that will push it firmly into the ranks of senior producers.

Glamis’s shareholders will receive 1.69 Goldcorp shares for each share of Glamis, representing a value of $51.49 per share based on Goldcorp’s August 30 closing price. That’s a premium of 32.7 percent to Glamis’ closing price.

The news sent shares of Glamis up 20 percent to $46.47 on the New York Stock Exchange. Goldcorp stock was down 8.6 percent at $27.85.

It would be much better performance-wise if we were only picking the acquiree, not the acquiror as well. But since the portfolio was equal-weighted the 20% gain in Glamis trumps the decline in Goldcorp. So we’ll take it.

Like this article? Why not try out:
Topics: GLG, Goldcorp (GG), Stock Market | RSS

One Comment on “Another Intra-Watch List Merger (Goldcorp/Glamis)”

  1. [...] What’s next? Glamis salting their mines? [...]

Leave a Comment

You must be logged in to post a comment.