Merger talks between gold miners Endeavour and Centamin stall
London-listed Centamin accused Canadian suitor Endeavour of not engaging in a ‘proper manner’ during talks.
The proposed merger of London-listed miner Centamin has stalled after it accused its suitor of not engaging in a “proper manner” during talks between the parties.
Centamin said Canadian firm Endeavour Mining will not share information vital to assessing its value until an extension to a deadline for its offer is agreed.
Endeavour currently has until the end of December to make a firm offer for Centamin’s assets under UK takeover law.
Centamin said it would not ask for a deadline extension until Endeavour provides it with key information on its assets and operations, as the pair appeared to reach an impasse.
In a statement to the London Stock Exchange, Centamin said: “The Centamin board is disappointed that despite its efforts at constructive engagement, Endeavour has repeatedly refused to engage in a proper manner.”
The London firm rebuffed a 1.9 billion dollar (£1.5 billion) takeover offer by the Canadian rival at the start of December, amid a tidal wave of big-name consolidation in the gold sector.
But on Monday, a deal between the pair appeared to edge closer after they acknowledged the need to assess the merits of a merger.
On Wednesday, Centamin said the approach “created an intense period of uncertainty” for all stakeholders in the business.
It called on Endeavour to “enter into substantive reciprocal due diligence” without further delay.
The company board said it still continues to advise shareholders to take no action in relation to Endeavour’s approach.
Shares in the company nudged 1% higher to 118.4p on Wednesday.