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Wheaton River sticks with Iamgold merger plan; Iamgold vote may be delayed
03:18 PM EDT Jun 08
DAVID PADDON
TORONTO (CP) - Iamgold Corp.'s plans for a shareholders vote on a proposed merger with Wheaton River Minerals Ltd. could be put on hold at the last minute Tuesday if an Ontario judge rules in favour of requests for a court-imposed delay.
While the two companies' boards have rejected recent overtures by two U.S. mining companies, Iamgold's plans for a shareholder vote was challenged in court Monday by lawyers for rival suitor, Golden Star Resources, and a group of shareholders.
Denver-based Golden Star argued that a stand-still agreement it signed with Iamgold in September should not be used to block Golden Star from making a formal rival offer. Iamgold has refused to provide a shareholders list, citing the agreement.
Lawyers for Golden Star and a group of shareholders with 15 per cent of Iamgold's stock also asked for a court order to delay the Iamgold vote to give shareholders time to consider both the Wheaton and the Golden Star alternatives.
Justice Alexandra Hoy of Ontario Superior Court said she would issue her ruling Tuesday morning at about 10 a.m., just two hours before Iamgold has scheduled its meeting and an hour before Wheaton River is to hold its vote in Toronto.
Earlier Monday, Vancouver-based Wheaton River - also the target of a separate takeover bid - rejected a sweetened takeover offer from Idaho-based silver miner Coeur d'Alene Mines Corp., which is offering $2.8 billion in shares and cash.
The Coeur offer for Wheaton, announced on May 27, was initially worth $2.5 billion but was increased last week. Wheaton River's board rejected the latest offer in a meeting on Sunday.
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"Following a thorough review of the revised proposal by (Coeur d'Alene), Wheaton continues to believe that the Iamgold transaction is superior," Wheaton chairman and CEO Ian Telfer said Monday in a release.
He said Wheaton's board confirmed the decision after Coeur's chairman and CEO, Dennis Wheeler, made a presentation to the directors on Sunday evening.
Wheeler stated Monday that he had been granted only a 30-minute meeting and was "surprised and disappointed by the hasty rejection of our increased proposal by the Wheaton River board."
Golden Star lawyer Jeffrey Leon has asked Justice Alexandra Hoy for a three-week delay of the Iamgold vote until June 29. He said his client could have a formal offer ready within two days.
Jim Douglas, counsel for five Iamgold shareholders with 15 per cent of its stock, said Iamgold's board and management had not only rejected Golden Star's overture but also prevented shareholders from seeing the rival offer.
The combined Canadian company, to be called Axiom Gold, would be owned 74 per cent by Wheaton shareholders and 26 per cent by Iamgold investors.
Wheaton River's board said Monday that this combination "continues to offer the best prospects for long-term value" and that Coeur has a history of losses.
Coeur d'Alene's Wheeler said it was "unfortunate" that the Wheaton River board refused to postpone its stockholder vote.
Wheaton River shares (TSX:WRM) were dropped one cent to close at $4.03 on the Toronto stock market Monday, while shares in Iamgold (TSX:IMG) rose seven cents to close at $7.77.
© The Canadian Press, 2004
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