TORONTO On August 11, Toronto-based IAMGOLD announced a proposed combination with GOLD FIELDS LTD.'s international assets. A few days later, GOLDEN STAR RESOURCES announced it would not extend its bid for Iamgold shares, bringing to a (possible) close the long-running struggle over which company would take over the attractive assets of Iamgold.
The enlarged company will become the fourth largest North American gold producer and the seventh largest gold producer worldwide.
The companies have agreed to combine the international assets of Gold Fields located outside the Southern African development community with Iamgold, in exchange for Gold Fields receiving Iamgold shares. Following the completion (which should be before year-end), Gold Fields will own approximately 70% of the fully diluted equity of the enlarged company. Existing Iamgold shareholders will own the remaining 30%, and will receive a special cash dividend of Cdn$0.50 per share. The new company will be named "Gold Fields International Ltd."
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