On Saturday, Goldcorp (G-T, GG-N) closed its acquisition of Glamis Gold (GLG-T, GLG-N), exchanging each Glamis share for 1.69 Goldcorp shares and $0.0001 in cash, resulting in the issuance of a whopping 283.6 million shares being added to the 418 million already outstanding..
Goldcorp moved quickly to complete the deal after receiving news a day earlier that the Divisional Court of the Ontario Superior Court of Justice had dismissed an appeal brought by former CEO Robert McEwen of the decision of the Ontario Superior Court of Justice which determined that Goldcorp has complied with all applicable laws with respect to the transaction with Glamis.
McEwen had been seeking a shareholder vote on the highly dilutive takeover, and had received support statements from about 7% of Goldcorp’s shareholders.
Goldcorp also recently received the final approval of the deal from Mexico’s Federal Competition Commission.
By mid-November, Ian Telfer, president and CEO of Goldcorp, will become chairman of Goldcorp while Kevin McArthur, president and CEO of Glamis, will become president and CEO of Goldcorp.
Goldcorp’s board will be reconstituted and comprised of 10 members: six from the existing Goldcorp board and four from the old Glamis board.
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