the latest rumor is that yamana is a natural fit for kinross because both companies have operations in chile and brazil. or it could just be a case of dundee trying to drum up some m&a fees:

Yamana Gold Looking Like a Takeover Target - Dundee

Following the sale of three non-core assets earlier this month to Aura Minerals, Yamana Gold Inc. (AUY) is looking more and more like a takeover target, says Dundee Securities analyst Ron Stewart.

Mr. Stewart said:

With only 6 operating assets along with a minority stake in the [copper-gold] Alumbrera mine in Argentina, YRI would make a good fit for either Kinross Gold (KGC) or Newmont Mining (NEM).

Mr. Stewart said a hook-up with Kinross is an obvious one, given both companies have operating mines in Brazil and Chile.

It would lower Kinross' political risk profile considerably, improve liquidity and vault the company forward, lifting the pro-forma market cap to around $20 billion.

Newmont would also benefit from a takeover of Yamana. It would lower its political risk, provide needed growth and once again rival Barrick Gold Corp. (ABX) once again for top spot in the gold-producing sector, the analyst said.

Mr. Stewart maintained his "buy" rating and 12-month target price of C$13.50,

"On its own, the entry point into Yamana today looks attractive to us; as a possible takeover candidate, it is compelling," he wrote.

http://seekingalpha.com/article/145649-yamana-gold-looking-like-a-takeover-target-dundee?source=yahoo