As a result, Noranda’s stake in Falco has increased to 91%; Noranda plans to acquire the remaining shares not tendered to its offer by the end of August. Following the merger of the two companies,
In March, Noranda, which already owned 58.5% of Falconbridge, offered 1.77 of its own shares for each Falco share. More recently, the bid survived a last-minute appeal by Wisconsin-based hedge fund Stark Investments to have the Ontario Securities Commission hold a hearing on Noranda’s offer.
Stark also wanted the OSC to order Falconbridge to obtain a new fairness opinion and issue a new circular to shareholders. Stark, which said it has “significant” holdings in Falco, argued that the existing fairness opinion was undervalued by about $4 per share.
The OSC denied the request for a hearing on the grounds that it would not be fair or in the public interest, especially on such short notice.
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