2 Min Read
Jan 14 (Reuters) - Small U.S. gold miner Allied Nevada Gold Corp questioned the credibility of a takeover offer that caused shares of the company to jump on Tuesday, saying that investors should review the hastily withdrawn release with caution.
A release distributed early on Tuesday said a company called China Gold Stone Mining Development Ltd had commenced a cash tender offer for all of the outstanding shares of Allied Nevada at $7.50 a share.
Hours later, another release retracted the announcement, saying it had been "issued in error and without the advice of counsel."
Allied Nevada said in a statement it had not been able to find any substantive information on China Gold Stone, and that filings needed to commence a tender offer had not been made with the U.S. Securities and Exchange Commission (SEC).
As a result, Allied Nevada said it "seriously questions the credibility of the proposal and advises shareholders to review announcements from China Gold Stone with caution."
CB Capital Partners Inc, an investment banking company based in California which was given as the media contact on the China Gold Stone press release, could not immediately be reached for comment.
Allied Nevada, which operates a gold mine in Nevada, said it had contacted the SEC and the Ontario Securities Commission about its concerns.
Shares in Allied Nevada jumped as high as $4.95, a gain of nearly 15 percent. Shares were last trading at $4.62, up 7 percent. (Reporting by Allison Martell in Toronto and Nicole Mordant in Vancouver; Editing by Jeffrey Hodgson and Meredith Mazzilli)