For gosh sakes - I just want a darn hedge (gold) and I had to buy the one company that decides it's going on an acquisition spree! It might be a fine deal in the long run but I bought this as a hedge (I know, I know buy Gold ETF next time) Down 5% this AM - I was wondering why this was the only gold stock in my watch list down this morning. When it rains it pours. Bah.
- Kinross Gold Corp. said Thursday it will acquire Canada-based Aurelian Resources Inc. for more than $1 billion in a move designed to boost its mining reserves.
- Toronto-based Kinross will pay 0.317 Kinross shares, plus 0.1429 of a warrant, for each Aurelian share. The warrant will have an exercise price of $32 per Kinross share, and will expire within five years.
- The deal -- worth about Canadian $1.2 billion (U.S. $1.18 billion) -- gives Kinross control over Aurelian's gold, silver and base metals reserves in Ecuador's Cordillera del Condor region.
- Kinross expects to issue about 47 million shares, or about 8 percent of its outstanding common shares, as part of the buyout. (wonderful)
Long Kinross Gold in fund; no personal position
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