3/25/2019, 4:55 PM (Source: TeleTrader)
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Goldcorp backs Newmont's sweetened bid

Newmont Mining Corp. has announced a special dividend of $0.88 per share to be paid if the bid for Goldcorp Inc. goes through, prompting the target entity to affirm support for the transaction on Monday. The initiative to create the largest producer of gold cleared a regulatory milestone in Mexico today.

Pending shareholder approval, the takeover is aimed at completion on April 18. The deal announced in January was followed by the decision this month by Newmont and Barrick Gold Corp. to establish a joint venture in Nevada. Newmont's major investors Paulson and Co. and VanEck opposed the move, citing funds intended for Goldcorp's top managers and claiming the new arrangement is damaging for gains from the initial acquisition.

Newmont, based in Colorado, estimated annual synergies from the purchase of Goldcorp at $365 million before tax, together with the potential of $4.4 billion in pretax value. It said the acquisition of the Canadian company would grow output to between six and seven million ounces per year within one decade and that the joint reserves and resources would be the largest of all players in the gold sector.

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