Hostile takeover bid appears to fail

Coeur d’Alene Mines Corp.’s efforts to acquire a Canadian gold company through a hostile takeover appear headed for failure, company officials said Tuesday evening.

The company launched a $2 billion effort last month to acquire outstanding shares of Wheaton River Minerals Ltd. However, it doesn’t appear that enough Wheaton shareholders are interested in the deal, and Coeur wasn’t willing to increase its price, company officials said in a press release.

Dennis Wheeler, company chairman, was not available Tuesday for comment.

Coeur spent five months wooing Wheaton River, but met vigorous resistance from the Vancouver, B.C.-based company. Wheaton’s management criticized Coeur’s past financial losses, and said its financing plan would inhibit Wheaton’s future growth.

Wheeler countered that Coeur had successfully raised cash for two new mine projects. In a previous interview, he said the new company emerging from the merger would have been North America’s fourth-largest gold-silver producer.

For the hostile takeover to proceed, however, more than 66 percent of Wheaton’s shareholders would have to sell their stock to Coeur d’Alene Mines. An offer for the shares expires at 2 p.m. Thursday.

Coeur has indefinitely postponed a Thursday shareholders meeting to approve the merger.