Andean, Goldcorp Takeover Target, Will Review Any Other Offers, CEO Says

Andean Resources Ltd., which agreed to a takeover from Goldcorp Inc. after getting an offer from Eldorado Gold Corp., said it hasn’t received other proposals and will study any fresh bid.

“If there is a better bid that comes in, we are going to evaluate it,” Andean Chief Executive Officer Wayne Hubert said today in interview from Salt Lake City, adding that between six and eight companies have accessed a data room that was closed last week after two years. “At this point, we think the GoldCorp bid is the best one.”

Goldcorp’s C$3.6 billion ($3.5 billion) bid last week trumped an offer from Eldorado to gain control of Andean’s Cerro Negro project in Argentina, which may produce 285,000 ounces of gold a year from as early as 2012. Andean’s Toronto-traded shares on Sept. 3 closed 7.4 percent higher than Goldcorp’s bid, signaling investors expect a higher offer.

“There is a lot of potential in the project and they are betting on something higher,” Hubert said.

Perth-based Andean’s Canadian stock rose 45 percent to C$6.98 on Sept. 3. Goldcorp is offering 0.14 of a share for each Andean stock, or cash payment of C$6.50 a share up to a maximum of C$1 billion. Andean’s Sydney-traded stock has risen 44 percent since the day before Goldcorp’s bid. It traded at A$7.02 at 2:03 Sydney time.

To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net

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