"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.
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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.
