• 210 days Could Crypto Overtake Traditional Investment?
  • 214 days Americans Still Quitting Jobs At Record Pace
  • 216 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 219 days Is The Dollar Too Strong?
  • 220 days Big Tech Disappoints Investors on Earnings Calls
  • 221 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 222 days China Is Quietly Trying To Distance Itself From Russia
  • 223 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 226 days Crypto Investors Won Big In 2021
  • 227 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 228 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 230 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 230 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 233 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 234 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 234 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 236 days Are NFTs About To Take Over Gaming?
  • 237 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 240 days What’s Causing Inflation In The United States?
  • 241 days Intel Joins Russian Exodus as Chip Shortage Digs In
A Looming Decision From The Fed Could Send Gold Soaring

A Looming Decision From The Fed Could Send Gold Soaring

The European Central Bank (ECB)…

U.S Targets Russian Gold Stockpiles

U.S Targets Russian Gold Stockpiles

In its latest round of…

Oil Demand Falters On New Wave Of Lockdowns

Oil Demand Falters On New Wave Of Lockdowns

Road traffic and transportation fuel…

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