Not only does Michael Curran see possible competing bids showing up for Meridian Gold Inc., but he also points out that Xstrata PLC could be interested in Northern Orion Resources Inc., which plans to merge with Yamana Gold Inc. to make an unsolicited bid for Meridian. The RBC Dominion Securities analyst has initial positive and negative reactions to the deal. For Meridian, he figures the transaction would position the company as part of one of the largest Tier 2 producers, with several development projects slated for construction over the next few years, replacing his earlier concern about a lack of growth at Meridian. But "accepting the offer would shift Meridian's asset base somewhat from a pure precious metal play... to a platform with significant base metal exposure," including copper and some molybdenum. For Yamana, pulling the deal off would establish the company as one of the leaders in mining in South America. It would also increase the company's non-gold exposure, by adding copper, silver, and some molybdenum to its asset base. On the TSX Thursday morning, Meridian is changing hands at $30.79, up $4.58 or 17 per cent; Yamana, down 86 cents or 6.6 per cent to $12.16; and Northern Orion, up 37 cents or 6.4 per cent to $6.20.
Editors' Picks
-
Commentary
Confronting Canada’s cultural acceptance of assault in hockey
-
Life
Is it safe to get a base tan to avoid sunburn?
-
News
'Does that country need more stadiums?' Brazilian discontent goes viral
-
Globe Investor
What your adviser will do with your hot stock tip
-
Life
How to pick a healthy salad dressing
Most popular videos »
-
News
Has speech fee controversy hurt Justin Trudeau's personal brand?
News
'Let Allah sort it out' says Palin on Syria
Life
Find out why this Toronto home sold for $149,000 under asking
Life
The Star Wars-inspired wedding photo everyone is talking about
-
Life
Adorable kitten rescued from car engine after long road trip
Life
Raw vs. cooked vegetables, which is better?
Highlights
More from The Globe and Mail
Most Popular Stories
-
Harper won't reveal if PMO had role in spreading Trudeau charity story
-
In a bear attack, when is it a bad idea to play dead?
-
Nigella Lawson has left family home following assault: report
-
Executive shuffle at HBC worries investors
-
Montreal constable fails in bid to ban mocking ‘sexplosive’ porno flick
