China Gold Says Allied Nevada Bid Announced in ErrorSimon Casey
China Gold Stone Mining Development Ltd., a Chinese company that announced a $779.6 million offer for U.S. miner Allied Nevada Gold earlier today, said the statement was published in error and was retracted.
The statement about a $7.50-a-share bid was issued “without the advice of counsel,” closely held China Gold Stone said in a separate release posted on the website of PR Newswire. The stock gained as much as 52 percent to $6.55 in pre-market trading in New York before the company halted trading.
Allied Nevada received a letter from China Gold Stone yesterday, which included the proposed offer, the Reno, Nevada-based company said in a statement today. Allied Nevada “seriously questions the credibility” of the bid and said that investors should review the Chinese company’s announcements with caution.
Allied Nevada also said it contacted the U.S. Securities and Exchange Commission and the Ontario Securities Commission with its concerns. No one at China Gold Stone could immediately be reached for comment.
Allied Nevada rose 7.2 percent to close at $4.62 in New York after the resumption of trading.