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Reuters reported that Tahoe Resources Inc.’s (TSX:THO,NYSE:TAHO) share price fell over 9 percent after Goldcorp Inc.’s (TSX:G,NYSE:GG) offering of nearly C$1 billion worth of the company’s stock was met with lackluster demand.
Reuters reported that Tahoe Resources Inc.’s (TSX:THO,NYSE:TAHO) share price fell over 9 percent after Goldcorp Inc.’s (TSX:G,NYSE:GG) offering of nearly C$1 billion worth of the company’s stock was met with lackluster demand.
As quoted in the market news:
Goldcorp announced late on Monday that it would sell its 25.6% stake in Tahoe Resources for C$998.5-million in a so-called bought deal – a transaction where one or more investment banks commit to buying the offering and then typically sells it to other investors.
The industry sources, who asked not to be identified because they were not authorised to comment publicly on the matter, said joint book runners GMP Securities and BMO Capital Markets were having some difficulty placing the stock at the offering price of C$17.20 a share.
The offering price represents a 7% discount to Tahoe’s closing stock price on Monday.
Neither GMP nor BMO responded immediately to a request for comment.