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Market Minute: The Battle For Metals Heats Up
What Happened: Barrick Gold just bought Equinox Minerals for nearly $8 billion.
That is almost a 10% premium to Equinox's share price.
What It Means: The commodity boom is in full swing. Companies are paying bigger
and bigger premiums to snap up smaller players. To grab Equinox, Barrick had to
bid 16% higher than the previous offer.
Why It Matters: Both Barrick and Equinox are Canadian companies. That other
offer for Equinox? It came from a Chinese company. Barrack may have stepped up
and paid more to keep the Equinox resources out of China's hands.
Recommended Action: Keep an eye on the junior resource sector. China still needs
commodities. It may have lost out on Equinox, but it still has plenty of cash to
go shopping. Takeovers will continue as commodity prices climb higher and
higher.
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