• 8 hours Social Media Influencers, Dream Job Or Billion-Dollar Fraud?
  • 10 hours Private Investors Turn Back On Mining
  • 14 hours Four Big Pharma Companies Reach $250 Million Opioid Settlement
  • 1 day ‘Click To Pray’, The Vatican’s Latest Attempt To Draw In Millennials
  • 2 days 3 Oil Stocks Ready To Weather The Geopolitical Storm
  • 2 days Gold Miners Eye Big Third Quarter Profits
  • 3 days The U.S. Doubles Down On Domestic Lithium Production
  • 4 days Reddit Trader Scores 14,000% Returns On Rogue Trade
  • 4 days The Tangled Web Stretching From Turkey To DC
  • 4 days The U.S. Dollar Eyes Greater Upside
  • 5 days More And More Americans Believe A Recession Is Looming
  • 5 days Is The Pot Stock Boom Over Already?
  • 6 days How The California Utility Crisis Could Have Been Avoided
  • 6 days The Ugly Truth About Investing In Private Equity Deals
  • 6 days The World Is Facing A $1 Trillion Food Waste Crisis
  • 6 days Is It Time To Buy The Dip In Gold?
  • 7 days The History Of Oil Markets
  • 7 days Three Stocks To Watch Ahead Of Earnings Season
  • 8 days Markets Flat As Bulls And Bears Battle It Out
  • 8 days The Mining Industry Still Has a Human Rights Problem
Gold Miners Eye Big Third Quarter Profits

Gold Miners Eye Big Third Quarter Profits

The gold miners are likely…

Is It Time To Buy The Dip In Gold?

Is It Time To Buy The Dip In Gold?

These price dips look like…

Private Investors Turn Back On Mining

Private Investors Turn Back On Mining

Private capital tracker Preqin in a third…

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