Reuters reported that Gold miner Osisko Mining Corporation which has offered about CAD 550 million for Queenston Mining Inc will buy Agnico Eagle Mines Limited's 9.2% stake in Queenston removing a potential rival bidder.
Agnico Eagle, Queenston's fourth largest shareholder will sell its stake for about CAD 42.3 million. At least one analyst had said the company could be interested in making an offer for Queenston. Queenston shares fell as much as 7% to CAD 5.03 as the agreement between Osisko and Agnico-Eagle lowered the chances of a bidding war.
Mr David Donovan spokesman of Queenston said that "Obviously people were thinking if there was another party that was likely to bid. Agnico was probably the obvious contender."
Osisko said that Agnico Eagle will receive $5.43 for each Queenston common share. Earlier this month that it will buy Queenston to gain access to the Upper Beaver project in Ontario's Kirkland Lake region.
