Lac shareholders vote to accept Barrick offer

The takeover battle for gold-producer Lac Minerals (TSE) has come to a satisfactory conclusion for American Barrick Resources (TSE).

Barrick acquired more than 80% of Lac’s common shares on a fully diluted basis in a vote by Lac shareholders. The offer was conditional on the acceptance of at least 66.6% of Lac’s shares being tendered. Barrick’s main rival for Lac was Royal Oak Mines (TSE), which was the first to take a run at Lac earlier this summer. Barrick quickly followed suit. Other suitors made noises but made no formal offers. The turning point came when Lac management endorsed a revised offer by Barrick.

With the acquisition of Lac, Toronto-based Barrick becomes the third-largest gold producer in the world. The total output of the combined operations of both companies in 1993 was about 2.7 million oz. gold.

Barrick has extended the period of acceptance of its offer to buy Lac shares until midnight (Eastern Standard Time) Sept. 19. Barrick is offering either $5 in cash and 0.325 shares of Barrick, or an all-share alternative of 0.487 shares of Barrick.

Barrick says it will take steps to acquire 100% of Lac once the Sept. 19 deadline is reached.