Gold Fields Ends Takeover Deal With Yamana Amid Rival Offer

(Bloomberg) -- Gold Fields Ltd. terminated its takeover deal with Yamana Gold Inc., ending its bid to buy the Toronto-based gold producer days after a rival offer emerged from two Canadian miners.

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“Gold Fields believes the most disciplined and prudent course of action to maximize Gold Fields’ shareholder value is to terminate the arrangement agreement,” the Johannesburg-based company said Tuesday in a statement. “Gold Fields is disappointed by this outcome, and continues to believe that the transaction was a financially and strategically superior offer for shareholders of both Gold Fields and Yamana.”

The termination came after Yamana said earlier Tuesday that it signed an agreement with Agnico Eagle Mines Ltd. and Pan American Silver Corp. after determining their $4.8 billion cash-and-stock takeover proposal was superior to the all-share offer by Gold Fields. Shares of Yamana, Agnico and Pan American surged.

The battle to acquire Toronto-based Yamana in the biggest gold deal of the year underscores the pressure to boost output as costs spiral and new deposits becomes more difficult to find. In the latest proposal, Pan American has agreed to acquire all of Yamana’s shares and Agnico Eagle would buy the Canadian assets.

The remaining offer for Yamana is valued at $5.02 a share, based on Thursday’s closing prices for the Canadian companies.

US-listed shares of Yamana soared 6.5% to $5.18 as of 11:31 a.m. in New York, while Agnico jumped 7.6% and Pan American rose 6%. Gold Fields’ US depository receipts surged 8.9%.

Yamana is expected to pay a $300 million termination fee within two business days, Gold Fields said in its statement.

(Updates shares. An earlier version corrects company name in first paragraph.)

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