Placer extends again

Make it six. That’s how many times Placer Dome (PDG-T) has extended its offer for partner and takeover target AurionGold. With the previous deadline hours away on Sept. 10, Placer tacked on another 10 days to move the expiry date to Sept. 20.

At last count, Placer reported that 37% of AurionGold’s shares had been tendered to its bid — enough to warrant four seats on the Aussie gold miner’s board of directors. Singing a familiar tune, AurionGold has rejected Placer’s request for board representation. AurionGold has consistently shot down Placer’s offer as too low, even after the injection of a cash sweetener.

AurionGold’s directors feel that appointing Placer nominees to the board would be inappropriate while Placer’s takeover bid is ongoing. In a prepared statement, AurionGold’s board said the appointments would be “unusual and contrary to the best principles of corporate governance.”

Placer plans to seek the seats at AurionGold’s annual general meeting in late October.

The latest extension is probably not the last: under Australian takeover rules, a bid can last one year. Placer’s hostile bid was launched on May 26. On offer are 17.5 Placer Dome shares plus $28 in cash for every 100 AurionGold shares.

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