Business Maverick: Yamana Bidding War Looms After Rival $4.8 Billion Offer

Pan American Silver and Agnico Eagle offered to buy Yamana in a cash-and-stock deal valued at $5.02 a share, the companies said Friday in a statement. Gold Fields, which offered to buy Yamana at the end of May, has five business days to match the offer.

Pan American is offering shares and Agnico Eagle will contribute $1 billion cash and shares under the agreement. The deal would make Pan American a major precious metals producer in Latin America, while Toronto-based Agnico Eagle will gain operational control of Canada’s Melartic mine after getting Yamana’s stake.

Gold Fields and Yamana have been facing investor criticisms over the combination mainly due to the high premium offered to do the deal that was valued at $7.25 billion when announced May 31. Yamana shareholders are scheduled to vote on the deal on Nov. 21, with Gold Fields investors voting on Nov. 22.

The rival offer caused shares in Gold Fields to surge 11% in Johannesburg trading, lifting the company’s all-stock offer to about $5.49 a share and valuing the deal at $5.53 billion.

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