Yamana Gold’s stock soars after receiving ‘superior’ buyout bid from Pan American, Agnico valued at nearly $5 billion

The U.S.-listed shares of Yamana Gold Inc.
AUY,
+17.77%
YRI,
+19.00%
shot up 21.2% in morning trading Friday, after the Canada-based gold, silver and copper miner received by buyout bid from Pan American Silver Corp.
PAAS,
-6.03%
PAAS,
-5.45%
and Agnico Eagle Ltd.
AEM,
+1.27%
AEM,
+0.02%
that values Yamana’s stock at a 23.0% premium. The bid consists of 153.54 million Pan American shares, $1 billion in cash from Agnico and 36.09 million Agnico shares, which at Thursday’s stock closing prices would be valued at a total of $4.82 billion. On a per-share basis, the bid represents 0.1598 of Pan American’s stock price, 0.0376 Agnico’s stock price and $1.04 in cash, which at Thursday’s closing prices would value Yamana shares at $5.02, or 23.0% above Yamana’s Thursday’s close of $4.08. Pan American shares fell 0.1% Friday morning while Agnico’s stock gained 1.4%. Yamana’s board of directors has determined that the Pan American-Agnico buyout bid is “superior” to the buyout agreement Yamana had with Gold Fields Ltd.
GFI,
+17.25%
from May, which at Thursday’s closing prices would value Yamana shares at $4.38 each. Gold Field’s stock soared 15.9% Friday morning, after plunging 21.8% since the Yamana deal was announced through Thursday. Yamana’s stock has run up 17.2% year to date, while the S&P 500
SPX,
+1.13%
has shed 21.2%.