European Goldfields gets nod for Eldorado merger
EUROPEAN Goldfield’s merger with Eldorado Gold was given the green light by companies representing institutional investors yesterday.
Institutional Shareholder Services and Glass Lewis & Co recommended the deal ahead of a shareholders’ vote on 21 February.
Eldorado in December announced a friendly takeover bid for European Goldfields valued at the time at $2.5bn (£1.6bn).
European Goldfields’ president and executive chairman, Martyn Konig, said: “The positive recommendations of ISS and GL strengthen our belief that the consideration shareholders will receive is fair, and that it is in their best interests to vote for the merger with Eldorado.” The companies also said that regulatory hurdles to the deal had been cleared.
Eldorado has operations in Brazil, China and Europe, while European Goldfields owns 95 per cent of a lead, zinc and silver mine in Greece.