• 678 days Will The ECB Continue To Hike Rates?
  • 678 days Forbes: Aramco Remains Largest Company In The Middle East
  • 680 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,080 days Could Crypto Overtake Traditional Investment?
  • 1,085 days Americans Still Quitting Jobs At Record Pace
  • 1,087 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,090 days Is The Dollar Too Strong?
  • 1,090 days Big Tech Disappoints Investors on Earnings Calls
  • 1,091 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,093 days China Is Quietly Trying To Distance Itself From Russia
  • 1,093 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,097 days Crypto Investors Won Big In 2021
  • 1,097 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,098 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,100 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,101 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,104 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,105 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,105 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,107 days Are NFTs About To Take Over Gaming?
Is It Time To Pay Attention To Gold Miners?

Is It Time To Pay Attention To Gold Miners?

The invasion of Ukraine by…

U.S Targets Russian Gold Stockpiles

U.S Targets Russian Gold Stockpiles

In its latest round of…

Gold Bulls Are Facing An Uphill Battle

Gold Bulls Are Facing An Uphill Battle

Last year proved to be…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Precious Metals

Newmont Mining Teases Investors With Special Dividend

Gold

US gold giant Newmont Mining (NYSE:NEM) has offered investors a one-time special dividend of 88 cents per share, if its $10 billion-friendly takeover of Goldcorp (TSX:G) (NYSE:GG) is approved, in an effort to stop a brewing shareholder revolt that could obstruct the deal with the Canadian gold miner.

Some of Newmont’s shareholders, including hedge fund giant Paulson & Co., have criticized the deal, saying it would deliver outsized benefits to Goldcorp shareholders, given that company's poor performance.

Paulson, which holds 14.2 million shares in Newmont, said it would support the current takeover bid if the premium offered to Goldcorp shareholders is adjusted.

Newmont said the immediate cash payment, worth $470 million, would represent a portion of the savings from its recently-announced joint venture with Barrick in Nevada.

Joe Foster, a portfolio manager at VanEck — one of the biggest Newmont shareholders — focused his criticism on the “outrageous payouts” that would be given to Goldcorp executives after the merger.

“I don’t think shareholders should support the lavish lifestyles of the Goldcorp executives for one thing,” Foster told Bloomberg last week. On top of that, it is unfair that Goldcorp shareholders should benefit from the recently-announced joint venture between Newmont and Barrick Gold Corp. in Nevada, given that was negotiated after the Goldcorp-Newmont terms were set, he said.

Goldcorp shareholders are set to vote on the deal that would create the world’s largest producer by output on April 4, and Newmont investors on April 11.

Greenwood Village, Colorado-based Newmont also announced Mexico’s Competition Commission had approved the deal without conditions. This follows clearance from the Canadian Competition Bureau and the Korea Fair Trade Commission in February.

Goldcorp shares climbed 2.5% to C$14.88 in early trade on Monday in Toronto. Newmont jumped 1.7% to a one-month high of $35.10 in New York.

By Mining.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment