Iamgold Corp. shares have soared as the investment community turns its gaze to the $2.2-billion gold producer as a possible takeover target.
With operations in Canada, Africa and South America, Iamgold has been a long-time laggard among Canadian intermediate gold producers and recently released a disappointing production forecast for the year. But the Toronto-based miner’s shares have risen 23 per cent in the past week to close at $4.73 in Toronto.
RBC Dominion Securities Inc. analyst Dan Rollins said Wednesday that Iamgold’s “surprise” decision on Monday to defer the Côté Gold project in Quebec may have been because it wanted “to clear the decks and bolster its share price ahead of a potential transaction.” Mr. Rollins also mused that a deal involving Iamgold and another company that he didn’t name could be back on the table.
A source familiar with the situation told The Globe and Mail that Iamgold was in discussions with Kinross Gold Corp. about a possible takeover late last year.
But those talks fell apart after the companies failed to reach a consensus on terms and over the composition of the board, said the source, who was granted anonymity because they were not authorized to speak publicly.
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