Speculation that rival bidder could emerge
Toronto-based Kirkland Lake Gold Ltd. chief executive Anthony Makuch said on Monday his company is not interested in raising or changing the offer it made last month to purchase Detour Gold Corp., after one analyst speculated that a new bidder may emerge.
In November, Kirkland announced an all-stock buyout that valued Detour shares at $27.50, or about a 24 per cent premium to its prior closing price, and pegged the entire transaction at about $4.89 billion.
Both companies operate gold mines in eastern Ontario, but have had starkly different trajectories over the past three years. Kirkland operates two high grade underground mines, including one in Australia, that produce gold at some of the lowest costs in the sector, and has been one of the best performing stocks on the TSX during that time. Continue Reading →