The company’s board “now unanimously recommends that Yamana shareholders vote against the Gold Fields transaction,” when they meet to vote on the deal on Nov. 21, Yamana said Tuesday in a statement. The company entered the arrangement agreement following the waiver by Gold Fields of its five business day matching right, Yamana said.for Yamana after the two Canadian rivals teamed up for an unsolicited $4.8 billion bid to break up an earlier merger agreement with the South African miner.
US-listed shares of Yamana was little changed at $4.87 as of 9:35 a.m. in New York, while Agnico Eagle and Pan American both fell 0.8%. Gold Fields shares lost earlier gains in Johannesburg, falling 0.6%. The battle to acquire Toronto-based Yamana in the biggest gold deal of the year underscores the pressure to boost output as costs spiral and new deposits becomes more difficult to find. Should their agreement be terminated, Yamana would have to pay a $300 million break fee to Gold Fields.
Under the rival proposal, Pan American would acquire Yamana, while Agnico Eagle would buy Yamana’s Canadian assets.