IDCN website news ..
The Fever is Back
Post says Placer, Barrick leading gold deal-making
Wed 6 Jan 99 In the News The National Post reports in its Wednesday edition that after a year of playing it safe, Canada's troubled gold sector has a new mindset: bigger is better. Senior gold producers have roared back to life with three major deals in recent weeks, aggressive plays that end many months of caution and cost-cutting.
On Nov. 30, Vancouver's Placer Dome Inc. snapped up a 50 per cent stake of a South African gold project for $235-million (U.S.). Then on Dec. 9, in a bid to become the world's lowest-cost gold producer, Peter Munk, chairman of Barrick Gold Corp., announced a $142-million all-cash hostile takeover for Argentina Gold Corp.
Not to be outdone, Placer grabbed the front page again Dec. 14 with a pricey $1.1-billion (U.S.) all-stock takeover bid for Getchell Gold Corp. of Denver. The consolidation games have begun. Barrick and Placer have signaled their deal making days are far from over. Meanwhile, many of this country's (Canada) mid-tier gold producers, anxious not to be left out in the cold, are on the make, analysts say. One analyst expects "a huge shake-out. There's too many companies chasing too few dollars."
Placer Dome Inc is now looking at an all-out buy-out of IDCN for $3.70 per share.
Sorry, folks. Couldn't help adding that last line -- editor's privilege - I WISH!! Gotta love me!!
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