New Takeover Battle In Gold

Gold Investing News reports its discussion on the battle of takeovers and mergers in the gold industry.

Today, China produces nearly 300 tonnes of gold. It is also the only country in the top three where production rose in 2008. Despite those statistics, China has proven to be a tough nut to crack for foreign gold companies. None of the majors have any serious presence there, and there have been some high-profile failures. Eldorado though has made it work.

Under the terms of that deal, shareholders of Australia-based Sino Gold will receive 0.55 of an Eldorado share for each share they own. Based on Thursday’s closing price, that’s worth C$6.77. A merger of the two companies will create a multinational gold produer with a combined stock value of about $6.4 billion. The combined company would maintain headquarters in Vancouver with a major office based in Sydney.

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