Cheif,
PRESS RELEASE ON TAKEOVERS.
Echo Bay Mines Ltd -
Journal says takeover potential seen
perhaps
Echo Bay Mines Ltd
ECO
Shares issued 139357131
1997-12-24 close $4
Monday Dec 29 1997
Also Crown Resources Corporation (CRO)
Also Getchell Gold Corp (GGO)
Also TVX Gold Inc (TVX)
Also Golden Star Resources Ltd (GSC)
The Wall Street Journal reports in its Monday
edition that some gold firms see glitter in rivals'
cheap stocks. Reporter Bob Ortega says that a
depressed market offers the chance to snap up
reserves and cut costs. Last week, Homestake
Mining agreed to acquire Plutonic Resources
of Australia for US$640 million in stock. In
addition, several other, mostly large, gold
companies say they are exploring acquisitions.
Prudential Securities analyst Clarence
Morrison says he sees Amax Gold, Echo Bay
Mines, Getchell Gold, Crown Resources,
Golden Star Resources and TVX Gold as
potential targets. Many of these companies,
along with other US, Canadian and Australian
producers, are shutting down less efficient
mines, laying off workers, deferring projects
and cutting back on exploration. Goldman
Sachs analyst Daniel McConvey says that
Canadian and Australian accounting rules do
not allow acquiring companies to pool their
accounting with companies they buy, which
gives US gold companies a financial edge
because they do not have to write off
acquisition premiums as goodwill.
(c) Copyright 1997 Canjex Publishing Ltd.
canada-stockwatch.com
Mr Metals |
