Investigation Overview
An investigation on behalf of investors, who currently hold shares of Goldcorp Inc. (NYSE: GG), was announced concerning whether the takeover of Goldcorp Inc. is unfair to NYSE: GG stockholders.
The investigation by a law firm concerns whether certain officers and directors of Goldcorp Inc. breached their fiduciary duties owed to NYSE: GG investors in connection with the proposed acquisition.
Vancouver, Canada based Goldcorp Inc. acquires, explores for, develops, and operates precious metal properties in Canada, the United States, Mexico, and Central and South America. On January 14, 2019, Newmont Mining Corporation (NYSE: NEM) and Goldcorp Inc. (NYSE: GG, TSX: G) announced they have entered into an agreement in which Newmont Mining Corporation will acquire all of the outstanding common shares of Goldcorp in a stock-for-stock transaction valued at $10 billion. Under the terms of the agreement, Newmont Mining Corporation will acquire each Goldcorp share for 0.3280 of a Newmont share, or a value of approximately $11.44 per NYSE: GG share.
However, given that at least one analyst has set the high target price for NYSE: GG shares at $20 per share and that NYSE: GG shares traded in 2018 as high as $15.55 per share, the investigation concerns whether the offer is unfair to NYSE: GG stockholders. More specifically, the investigation concerns whether the Goldcorp board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.