Yamana Gold’s stock soars after receiving ‘superior’ buyout bid from Pan American, Agnico valued at nearly $5 billion

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The U.S.-listed shares of Yamana Gold Inc. AUY, +19.85% YRI, +18.10% shot up 21.2% in morning trading Friday, after the Canada-based gold, silver and copper miner received by buyout bid from Pan American Silver Corp. PAAS, -1.97% PAAS, -3.97% and Agnico Eagle Ltd. AEM, +5.67% AEM, +3.61% that values Yamana’s stock at a 23.0% premium. The bid consists of 153.54 million Pan American shares, $1 billion in cash from Agnico and 36.09 million Agnico shares, which at Thursday’s stock closing prices would be valued at a total of $4.82 billion. On a per-share basis, the bid represents 0.1598 of Pan American’s stock price, 0.0376 Agnico’s stock price and $1.04 in cash, which at Thursday’s closing prices would value Yamana shares at $5.02, or 23.0% above Yamana’s Thursday’s close of $4.08. Pan American shares fell 0.1% Friday morning while Agnico’s stock gained 1.4%. Yamana’s board of directors has determined that the Pan American-Agnico buyout bid is “superior” to the buyout agreement Yamana had with Gold Fields Ltd. GFI, +16.58% from May, which at Thursday’s closing prices would value Yamana shares at $4.38 each. Gold Field’s stock soared 15.9% Friday morning, after plunging 21.8% since the Yamana deal was announced through Thursday. Yamana’s stock has run up 17.2% year to date, while the S&P 500 SPX, +1.36% has shed 21.2%.

This article was originally published by Marketwatch.com. Read the original article here.

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