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April 25, 2011, 4:51 p.m. EDT

Canadian market tarnished by Barrick Gold

Shares of Canada’s largest gold producer fall nearly 7% on news of bid

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By Wallace Witkowski, MarketWatch

SAN FRANCISCO (MarketWatch) — Canada’s largest gold company dragged the Toronto Stock Exchange into the red Monday after it offered to buy copper miner Equinox Minerals Ltd. in an all-cash deal.

The S&P/TSX Composite Index  fell 0.5% to close at 13,907, pressured by shares of Barrick Gold Corp. /zigman2/quotes/209252292/delayed CA:ABX -0.91%  , which closed down 6.7%.

On Monday, Barrick offered to acquire Equinox  for C$8.15 a share, or about C$7.3 billion. Equinox shares, the most actively traded on the Toronto exchange with 47.1 million shares changing hands, ended the day up 11.6%. Read more on Barrick’s Equinox bid.

Shares of Lundin Mining Corp. /zigman2/quotes/201246870/delayed CA:LUN -0.12% rose 3.8% on the day after the deal’s announcement. Equinox, as part of the Barrick deal, is required to abandon its hostile bid for Lundin.

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Colin Cieszynski, a market analyst at CMC Markets, said Barrick could leverage its infrastructure in Africa with Equinox but that the move is probably not a huge step for them.

The respective stock movements, however, are indicative that Barrick’s move could draw it into a bidding war with Chinese mining company Minmetals Resources Ltd., which has offered C$6.3 billion for Equinox, the analyst said.

“Equinox trading above Barrick’s bid price suggests the market believes that Minmetals will come back with another bid,” Cieszynski said. Equinox shares closed up 22 Canadian cents a share higher than Barrick’s bid.

The S&P/TSX Capped Materials Index , which has Barrick as a component, declined 1.4%; and the S&P/TSX Capped Diversified Mining and Metals Index , which has Equinox and Lundin as components, advanced 2%.

Another mover on the metals index was First Quantum Minerals Ltd. /zigman2/quotes/209694942/delayed CA:FM +3.01% with shares up 5%.

Similarly, the materials index had its share of notable decliners with shares of Jaguar Mining Inc. /zigman2/quotes/200068656/delayed CA:JAG -3.66%  down 5.6% and Pan American Silver Corp.  shares shedding 4.1%.

Gold for June delivery  rose $5.30, or 0.4%, to settle at $1,509.10 an ounce, and copper for July delivery  fell 10 cents, or 2.2%, to settle at $4.32 a pound on the New York Mercantile Exchange. Read more on the metals markets.

Another drag on the Canadian market was the energy sector. The S&P/TSX Capped Energy Index  fell 0.6% with shares of heavily weighted Suncor Energy Inc. /zigman2/quotes/204570600/delayed CA:SU -0.10%  down 0.7%.

Shares of large caps Imperial Oil Ltd. /zigman2/quotes/203145852/delayed CA:IMO -1.23%  and Canadian Natural Resources Ltd. /zigman2/quotes/203742161/delayed CA:CNQ -0.61%  also ended the day lower. Imperial shares declined 1.3%, and Canadian Natural Resources shares fell 1.2%.

Crude oil for June delivery  fell 1 cent to settle at $112.28 a barrel on the Nymex. Read more on oil.

In currency trading, the Canadian dollar fell against its U.S. counterpart with the greenback /zigman2/quotes/210561978/realtime/sampled USDCAD +0.3531%  buying 95.48 Canadian cents, compared with 95.31 in the previous session.

/zigman2/quotes/209252292/delayed
CA : Canada: Toronto
$ 22.82
-0.21 -0.91%
Volume: 7.35M
Dec. 8, 2022 4:16p
P/E Ratio
16.84
Dividend Yield
2.23%
Market Cap
$40.58 billion
Rev. per Employee
$702,620
loading...
/zigman2/quotes/201246870/delayed
CA : Canada: Toronto
$ 8.36
-0.01 -0.12%
Volume: 3.58M
Dec. 8, 2022 4:00p
P/E Ratio
9.52
Dividend Yield
4.31%
Market Cap
$6.51 billion
Rev. per Employee
$341,373
loading...
/zigman2/quotes/209694942/delayed
CA : Canada: Toronto
$ 32.16
+0.94 +3.01%
Volume: 2.37M
Dec. 8, 2022 4:00p
P/E Ratio
15.02
Dividend Yield
1.00%
Market Cap
$21.62 billion
Rev. per Employee
$569,399
loading...
/zigman2/quotes/200068656/delayed
CA : Canada: Toronto
$ 3.16
-0.12 -3.66%
Volume: 19,559
Dec. 8, 2022 3:59p
P/E Ratio
7.66
Dividend Yield
5.06%
Market Cap
$237.69 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/204570600/delayed
CA : Canada: Toronto
$ 40.62
-0.04 -0.10%
Volume: 10.76M
Dec. 8, 2022 4:17p
P/E Ratio
7.37
Dividend Yield
5.12%
Market Cap
$55.49 billion
Rev. per Employee
$3.29M
loading...
/zigman2/quotes/203145852/delayed
CA : Canada: Toronto
$ 70.51
-0.88 -1.23%
Volume: 2.98M
Dec. 8, 2022 4:00p
P/E Ratio
7.21
Dividend Yield
2.50%
Market Cap
$43.18 billion
Rev. per Employee
$10.22M
loading...
/zigman2/quotes/203742161/delayed
CA : Canada: Toronto
$ 74.57
-0.46 -0.61%
Volume: 10.26M
Dec. 8, 2022 4:00p
P/E Ratio
7.27
Dividend Yield
4.56%
Market Cap
$86.61 billion
Rev. per Employee
$4.30M
loading...
/zigman2/quotes/210561978/realtime/sampled
US : Tullett Prebon
1.3643
+0.0048 +0.3531%
Volume: 0.0000
Dec. 9, 2022 4:44a
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Wallace Witkowski is a MarketWatch news editor in San Francisco.

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