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Eldorado Gold Takes 10% Hit on $2.5B Deal for European Goldfields; Target Up Less than 1%

Eldorado Gold (ELD.TO) is down over 10% at $13.82 a share in early TSX trading this morning after the miner announced a $2.5 billion stock-and-cash takeover bid for European Goldfields (EGU.TO).

Under terms of the deal, European Goldfields shareholders are being offered 0.85 Eldorado shares and C$0.0001 in cash for each share they now own. The transaction values EGU at $13.08 per share, based on the Eldorado's closing price Friday on the TSX.

European Goldfields shares currently are ahead less than 1% at $11.76 each, trading through a wide range in heavy volume. The stock gained about 2.5% to $12.14 a share soon after the opening, only to slide as low as $11.61 -- down 23 cents -- before pushing back into positive territory.

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

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