By Rachelle Younglai and Nicole Mordant
TORONTO/VANCOUVER (Reuters) - Shareholders of Iamgold Corp.
The C$2.3 million ($1.7 million) merger deal garnered only 42 percent of the Iamgold shareholder vote -- short of the 50 percent needed -- during a special shareholders meeting in Toronto that was delayed for several hours as the company determined which ballots were eligible.
"I am disappointed, obviously. We're going to look at all opportunities, including Golden Star," said Iamgold chief executive Joseph Conway.
Wheaton River said its shareholders would still vote on the deal later on Tuesday despite the Iamgold decision.
Both firms' boards had backed the merger plan, which was
unveiled in March. But an acrimonious takeover battle erupted
in late May when Denver's Golden Star Resources Ltd.
Iamgold and Wheaton, both mid-sized gold-mining firms, have rejected these unsolicited approaches several times as their suitors sweetened the bids. The takeover action comes at a time of high gold prices and revived interest in the gold sector.
Going into the votes, company management and analysts said the outcome would be very close after a hard-fought contest on the part of all four miners.
Investors were kept on tenterhooks for much of Tuesday as officials double-checked Iamgold voting slips after some 25 million more votes were received than the company thought were eligible to be cast.
An Iamgold spokesman said that the "overvote" came about as some shareholders voted more than once, while others who were not eligible to vote may also have cast ballots.
At current market prices, Iamgold's all-stock offer for Wheaton is equal to C$4.15 a share, 11 percent higher than Wheaton's closing stock price of C$3.75 -- a richer premium than has been seen for some time.
But the Iamgold all-stock bid for Wheaton has fallen behind Coeur's cash and stock offer. Coeur's proposal is currently worth C$4.59 a Wheaton share, about 12 percent richer than the Iamgold offer.
(Additional reporting by Allan Dowd in Vancouver)
($1=$1.33 Canadian)
© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
Only GlobeinvestorGOLD combines the strength of powerful investing tools with the insight of The Globe and Mail.
Discover a wealth of investment information and and exclusive features.
