Why Yamana Gold Stock Jumped This Week
Yamana Gold (NYSE: AUY) stock rocketed higher and closed the week up 8.8%, according to data provided by S&P Global Market Intelligence.
It wasn't gold prices driving the move. Gold did rebound a bit this week, but only momentarily, and its price has consistently declined since mid-April. But it looks as though Yamana Gold is getting acquired at a healthy premium.
On May 31, Yamana Gold and South Africa-based gold miner, Gold Fields (NYSE: GFI) announced that they had entered an agreement where the latter will acquire Yamana Gold in an all-stock deal. For each Yamana share they own, shareholders will receive 0.6 shares of Gold Fields. Based on Yamana's 10-day volume-weighted average price through the last trading day before the deal was announced, that exchange ratio implied a premium of roughly 34% for Yamana shareholders and valued the company at $6.7 billion.
Source Fool.com