• 18 hours The Problem With California's Electric Dream
  • 1 day TikTok’s 11th-Hour Reprieve
  • 2 days Wealthy Investors Have Been Fleeing Stocks Since April
  • 3 days Thorium Could Kickstart A New Nuclear Boom
  • 3 days Is A Massive Gold Rally On The Horizon?
  • 4 days Can Tesla Really Produce A $25,000 Self-Driving Electric Car?
  • 5 days Gold Miners Brace For Seasonal Downturn
  • 5 days The Silver Plunge Continues
  • 5 days 7 COVID Vaccine Stocks To Plan Upside Moves
  • 6 days Rhodium Climbs Reaches Record Highs
  • 6 days Tesla Tumbles After Battery Day Fails To Impress
  • 7 days Three Energy ETFs To Watch This Decade
  • 7 days What To Do With $2 Trillion In Suspicious Bank Transactions?
  • 8 days How The Stock Market Predicts Electoral Victory
  • 9 days Tesla's "Battery Day" Could Deal A Blow To Cobalt Miners
  • 9 days New TikTok Deal Hopes To Bypass National Security Concerns
  • 10 days Where Will Gold Go From Here?
  • 10 days COVID-19 Is Fueling A Pastic Waste Crisis
  • 11 days Gold Output Set To Decline
  • 12 days Uber And Lyft Look To Go Electric
Gold Miners Brace For Seasonal Downturn

Gold Miners Brace For Seasonal Downturn

Gold miners have been hammered…

The Silver Plunge Continues

The Silver Plunge Continues

Earlier in the week, silver…

Is A Massive Gold Rally On The Horizon?

Is A Massive Gold Rally On The Horizon?

Gold prices have fallen from…

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