NEW YORK (AP) -- Aurizon Mines Ltd. said Tuesday that its shareholders should reject Alamos Gold Inc.'s takeover bid and approve the deal it struck to sell itself to Hecla Mining Co. for about $775 million.
Hecla, a Coeur D'Alene, Idaho-based silver miner, said Monday that it had agreed to acquire the Canadian gold miner's outstanding shares for cash and stock totaling 4.75 Canadian dollars ($4.63) each, 9 percent above the Friday closing price of Aurizon's U.S.-traded shares.
That came after Aurizon's January rejection of fellow Canadian gold miner Alamos' offer of 4.65 Canadian dollars per share in cash and stock.
Alamos released a statement late Monday saying that it would not boost its offer, which was set to expire on Tuesday. But it argued that the combination of Alamos with Aurizon would create a much more valuable company than the proposed deal with Hecla. Alamos has been buying Aurizon shares through a tender offer and currently holds about 16.1 percent of the company's stock.
Aurizon said Tuesday that the Hecla offer currently offers a higher premium than the Alamos offer, based on the Monday closing stock prices of both companies. It also noted that the Hecla offer allows for a much higher cash percentage than the Alamos offer.
In premarket trading, Hecla shares rose 9 cents, or 2.2 percent, to $4.16; Aurizon's U.S. shares slipped a penny to $4.33; and Alamos's U.S. shares were unchanged at $14.24.
- Mergers, Acquisitions & Takeovers