Meridian Gold rejects unsolicited proposal from Yamana Gold

By Devika Patel

Knoxville, Tenn., July 3 - Meridian Gold Inc. announced that its board of directors has considered Yamana Gold Inc's unsolicited proposal to acquire all of the common shares of Meridian Gold and determined that the proposal does not provide a basis to enter into discussions.

Yamana had previously announced that it had entered into a business combination agreement with Northern Orion Resources Inc., which was conditional upon the acquisition of 66 2/3% of the shares of Meridian Gold by Yamana.

Meridian Gold's board noted that the 14.9% premium to Meridian's undisturbed share price implied by Yamana's closing share price on Tuesday does not reflect the value of Meridian Gold's proven, high-quality, precious metals-focused asset base.

Goldman, Sachs & Co. and BMO Capital Markets are acting as financial advisors to the company. Canadian legal counsel to the company is Fraser Milner Casgrain LLP and U.S. legal counsel is Skadden, Arps, Slate, Meagher & Flom LLP.

Meridian Gold is a Reno, Nev.-based miner and explorer of gold and other precious metals.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.