Gold News

14/08/07: Yamana Gold steps up Meridian bid

Yamana Gold's attempt to acquire Meridian Gold took another step forward today when the cash part of the offer was increased by 27 per cent.

The original offer included a cash bid of around C$3.15 per share but today's update has risen to $4 per share, in a bid that will remain on the table until September 7th.

A successful bid would add significantly to Yamana's clout in the industry, after completing takeover deals with RNC Gold, Desert Sun Mining and Viceroy Exploration last year. A bid for Northern Orion Resources is also ongoing, as Yamana seeks to boost its global status.

According to a statement from the company, completing a deal with Meridian would allow the combined firm to produce 1.4 million ounces of gold each year by 2009, thanks to mines in Brazil, Chile and Argentina.

Yamana chief executive Peter Marrone has claimed that the updated bid will be Yamana's final offer and he has urged shareholders to take advantage of it.

"We have listened to shareholders and, equally, we have made it clear that we would be prudent and disciplined. This is a full, fair and final price," he said.

This comes on the back of a statement from Meridian claiming the original bid had significantly undervalued the company.

A Canadian gold producer, Yamana is also a major player on the copper-gold industry, with five operating mines in total.

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