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Message: More Info...Gammon Gold wins bitter takeover battle


It took seven months, but it looks like Gammon Gold will finally acquire Capital Gold Corp .

The two companies signed a merger agreement way back on Oct. 1, but their friendly deal was uprooted by Timmins Gold . The two bidders have been duelling for months, and the purchase price has jumped significantly as they tried to outbid each other.

The final shareholder vote split hasn't been provided yet, but provisional results are out and Capital said Gammon has won the contest. Final results should be out in the next few days

Gammon's latest bid was for $6.34 per share. That's up from the original $4.57 that was agreed on when Capital and Gammon signed their merger agreement. The accepted bid values Capital around $387-million.

Before the vote, Capital urged their shareholders choose Gammon's bid, and both advisory firms, ISS and Glass Lewis, recommended Gammon's bid.

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