Sean Boyd, the chief executive officer of Agnico Eagle Mines Ltd., says he’s confident Agnico’s multibillion-dollar bid to acquire Kirkland Lake Gold Ltd. will succeed, even if he has little idea whether a competing offer will emerge.
Toronto-based Agnico last month reached a friendly agreement to acquire Kirkland in an all-stock, no-premium takeover valued at more than $13-billion. If it closes, the transaction will see Agnico emerge as the third-biggest gold company in the world, with a portfolio of mines based mainly in Canada and Australia. The deal is the biggest M&A transaction ever attempted by Agnico, and one of the biggest ever in the Canadian gold sector.
While the transaction has been warmly received by Agnico shareholders, some have questioned whether Toronto-based Kirkland is selling itself for too low a price.
Mining blog IKN reported last month that several other large mining companies, including Barrick Gold Corp., Newmont Corp. and Newcrest Mining Ltd. were also in the running to buy Kirkland. Barrick in particular has been vocal about wanting to increase its footprint in Canada, where it has only one mine.
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