* Alamos says will not extend tender offer
* Alamos to not take up shares tendered to its bid
* The outcome is as we expected: Hecla CEO
By Garima Goel
March 19 Canadian miner Alamos Gold Inc
dropped its offer to buy peer Aurizon Mines Ltd,
putting an end to its bidding war with Hecla Mining Co.
Alamos said it would not extend its offer for Aurizon
shareholders to tender their shares after it failed to overturn
a break-up fee payable to rival bidder Hecla. The company said
it would not take up any Aurizon shares that were tendered to
A spokesperson for Alamos declined to comment on the
percentage of Aurizon's shares that were tendered.
Alamos, which is Aurizon's largest shareholder with a 16.11
percent stake, made an unsolicited C$780 million ($759.16
million) offer in January. Hecla topped Alamos' bid with a
friendly C$796 million offer on March 4.
If Alamos acquired more than a third of Aurizon's shares,
the company would have to pay Hecla C$27.2 million as a break-up
Alamos's Chief Executive John McCluskey had told Reuters on
March 12 that the company was likely to walk away from the bid
if it loses the regulatory ruling on the merits of the break fee
committed to Hecla and a second poison pill adopted by Aurizon.
The British Columbia Securities Commission (BCSC) on Monday
rejected Alamos' application against the break-up fee but ruled
in favor of Alamos's application for the removal of the poison
"The outcome is as we expected ... We are looking at
alternative financing to what we have," Hecla CEO Phillips Baker
Hecla has received a commitment for a $500 million financing
from the Bank of Nova Scotia.
Hecla shares closed at $4.08 on the New York Stock Exchange
on Tuesday. Shares of Aurizon closed at C$4.48, while those of
Alamos closed at C$14.98 on the Toronto Stock Exchange.