Eldorado, Goldcorp In Fight For Australian Firm
September 03, 2010 4:35 AM
Eldorado Gold (NYSE: EGO), Canada's fifth-largest gold producer, offered $3.2 billion to acquire Australia's Andean Resources.
Andean said it is in talks with a rival suitor, Bloomberg News reported. Eldorado is offering about a third of a share for every one share of Andean. Eldorao's bid was soon trumped by $3.4 billion cash-stock-offer from Goldcorp (NYSE: GG).
Acquiring the Australian firm will give Eldorado a 2.1 million ounce project in Argentina, adding to assets in Brazil and China, Bloomberg reported. There have been 290 gold deals done this year so far worth $38.4 billion, according to data compiled by Bloomberg.
Eldorado approached Andean in August, but was rejected. Eldorado said if it is successful in its bid for Andean, the combined company will be the world's fastest-growing gold miner.
Andean's board has advised shareholders to accept Goldcorp's offer.
