Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, April 4, 2014

Article Excerpt

YAMANA GOLD INC., $9.50, symbol YRI on Toronto, is teaming up with Osisko Mining (symbol OSK on Toronto) to thwart a hostile takeover bid by Goldcorp (symbol G) for Osisko. Osisko owns the Canadian Malartic mine in Quebec, which is forecast to produce 525,000 to 575,000 ounces of gold this year. Yamana will provide $441.5 million in cash and $929.6 million worth of its shares, to buy a 50% interest in all of Osisko’s mining and exploration assets, including Canadian Malartic. The offer is roughly 22% higher than Goldcorp’s bid. The acquisition lets Yamana diversify beyond South America and Mexico, where it now has seven mines. It should also boost Yamana’s cash flow per share. If Osisko receives a superior counteroffer from Goldcorp and backs out of the deal, it will have to pay Yamana a $70-million break fee. Yamana Gold is still a buy. Please make sure you are logged in to your account to access these articles. Click here if you’ve lost your…