UPDATE: Market Chatter: Alamos CEO Says Likely To Drop Aurizon Bid If It Loses Regulatory Ruling; Both Stocks Lower

By MidnightTrader.com Staff,

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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 is down around 0.5% today. Aurizon is 1% lower.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: HL

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