Money and Metals

Reuters reports on a mining merger that got a mixed reception on Wall Street. "Toronto-based Barrick Gold Corp., the world's No. 3 gold producer, agreed on friendly terms to acquire Placer Dome Inc. after raising its offer for the Vancouver gold producer to $10.4 billion, the companies said Thursday. That deal prompted Vancouver-based gold producer Goldcorp Inc. to buy certain mining assets from Barrick for just under $1.49 billion in cash."

"In afternoon trading on the New York Stock Exchange, Goldcorp shares rose 67 cents, or 3.4 percent, to $20.45; shares of Placer Dome fell 63 cents, or 2.8 percent, to $22.02; and shares of Barrick fell 60 cents, or 2.2 percent, to $26.62."

"The new $10.4 billion offer replaces Barrick's last offer of about $9.4 billion that had been rejected by the board of Placer Dome, the world's sixth-largest gold mining company. Under the agreed to terms, Placer shareholders will get either $22.50 in cash or 0.8269 of a Barrick common share plus 5 cents cash per share."

"Barrick, Canada's biggest gold miner, has limited its cash for the offer at $1.34 billion and shares to be issued at 333 million. Placer's board unanimously backed the new offer."

"Under the $1.49 billion transaction, Goldcorp will get Placer's stake in the Campbell mine, the Porcupine joint venture and the Musselwhite joint venture in Ontario. The company will also receive a 50 percent interest in the La Coipa mine in Chile, and a 40 percent interest in the Pueblo Viego development project in the Dominican Republic."