Cadence Energy accepts Barrick Gold's cash offer
By
Associated Press
July 21, 2008
|
Canadian miner Barrick Gold Corp. on Monday said oil and natural gas producer Cadence Energy Inc. has accepted its sweetened buyout offer.
On Thursday, Toronto-based Barrick formalized its offer to buy Cadence for 410 million Canadian dollars ($407.8 million), or 6.75 Canadian dollars ($6.70) per share.
Previously, the company made an unsolicited all-cash offer of 354 million Canadian dollars, or 6 Canadian dollars per share.
Barrick said Cadence's board of directors unanimously decided that Barrick's offer is in the best interest of Cadence and its shareholders.
Barrick said Cadence has ended takeover discussion with Daylight Resources, which had previously made a cash-and-stock offer for the company and did not try and match Barrick's offer.
Barrick said if its offer is not successfully completed, Cadence must pay a termination fee of $11.4 million.
A representative from Cadence was not immediately available for comment.
U.S.-traded shares of Barrick rose 70 cents to $48 in premarket activity.
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