Singing a common refrain, takeover target AurionGold has rejected Placer Dome‘s (PDG-T) request for four seats on the Aussie gold miner’s board of directors.
The Canadian miner figures that with about 37% of AurionGold’s shares tendered to its bid it deserves to have four representatives appointed to AurionGold’s board. Placer will seek the seats at AurionGold’s annual general meeting on Oct. 30.
AurionGold’s directors feel that appointing Placer nominees to the board would be inappropriate while Placer’s takeover bid is still ongoing.
In a prepared statement, AurionGold’s board said the appointments would be, “unusual and contrary to the best principles of corporate governance.”
Placer recently extended its final, unconditional bid for AurionGold to give holdouts more time to reconsider their objection. The extension is the fifth since the major launched its hostile bid last May.
Placer’s offer stands at 17.5 of its own shares plus a $28 cash sweetener for every 100 AurionGold shares. AurionGold has consistently shot down the offer, even with the sweetener, as too low. The offer is currently set to expire on Sept. 10.
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