Investors raise concerns on Newmont’s proposed takeover of Goldcorp
|Toronto Star 22 Mar 2019 at 13:01|
VANCOUVER - Investors are raising concerns about Newmont Mining Corp.’s proposed takeover of Goldcorp Inc. as early April votes on the deal approach.
Hedge fund giant Paulson & Co. Inc. says in a letter that it believes the US$1.5-billion premium offered to Goldcorp shareholders is unjustified given the company’s poor performance.
The firm, which holds 14.2 million shares in Newmont, says it does not support the current takeover bid but could change its stance if the premium is adjusted.
The British Columbia Investment Management Corp., meanwhile, says it will vote against the deal because of the high payment set to go to Goldcorp chairman Ian Telfer.
Goldcorp recently said it would pay a US$12 million retirement allowance to Telfer, almost triple the US$4.5 million the company had previously disclosed he was entitled to.
The B.C. investment group, which manages investments for the province’s public sector, says the proposed payout to Telfer is misaligned with the interests of shareholders and sets a “troubling precedent” in the capital markets.