A Gold Merger Fight for the Holidays (GG)

With gold up over $1,000.00 per ounce and with many pundits looking for much higher prices into 2010 and beyond, it has been a bit of a wonder where the gold mergers have been.  This morning came an announcement from Goldcorp Inc. (NYSE: GG) that it has delivered to Canplats Resources Corporation an amendment to Goldcorp’s proposal to acquire all of the issued and outstanding shares of Canplats that matches the proposal made on December 21, 2009 by Minera Penmont S. de R.L. de C.V.

Goldcorp has offered to pay C$4.40 per share, with C$4.20 in cash plus shares of a newly formed company for Canplats’ exploration properties. There had already been speculation that the offer would be matched, and now that is coming to fruition.

Since Goldcorp has matched the Penmont merger proposal, the company said that Canplats must enter into an agreement with Goldcorp to reflect the amended terms of the transaction and must recommend that the Canplats shareholders approve the business combination with Goldcorp.

The deal was set at $228 million.  The problem with today’s news is that Canplats already issued a statement earlier this week that the Penmont offer is a superior proposal.  If things go the same way in Canada as in the U.S. and elsewhere, then this sets the stage for what might be a bidding war.

JON C. OGG