Market Chatter: Alamos CEO Says Likely To Drop Aurizon Bid If It Loses Regulatory Ruling

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"Alamos Gold Inc (AGI.TO) said it was likely to walk away from a bid to buy Aurizon Mines Ltd (ARZ.TO) if it loses a regulatory ruling on the merits of a poison pill adopted by Aurizon and the break fee committed to rival bidder Hecla Mining Co ( HL )," Reuters reported.

It reported: "We are not willing to pay a break fee to Hecla that essentially makes the transaction more expensive for us than it does for Hecla," Alamos CEO John McCluskey told Reuters."

Alamos, Aurizon's largest shareholder with a 16.11% stake, made a C$780 million hostile offer for the Canadian gold miner in January. McCluskey said the C$27.2 million break fee pushes Alamos's cost of acquiring Aurizon beyond that of Hecla's.



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This article appears in: Investing , Commodities

Referenced Stocks: HL

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