UPDATE 1-Alamos drops bid to buy Aurizon Mines

Tue Mar 19, 2013 7:04pm EDT
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* Alamos says will not extend tender offer

* Alamos to not take up shares tendered to its bid

* The outcome is as we expected: Hecla CEO

By Garima Goel

March 19 (Reuters) - Canadian miner Alamos Gold Inc dropped its offer to buy peer Aurizon Mines Ltd, putting an end to its bidding war with Hecla Mining Co.

Alamos said it would not extend its offer for Aurizon shareholders to tender their shares after it failed to overturn a break-up fee payable to rival bidder Hecla. The company said it would not take up any Aurizon shares that were tendered to its offer.

A spokesperson for Alamos declined to comment on the percentage of Aurizon's shares that were tendered.

Alamos, which is Aurizon's largest shareholder with a 16.11 percent stake, made an unsolicited C$780 million ($759.16 million) offer in January. Hecla topped Alamos' bid with a friendly C$796 million offer on March 4.

If Alamos acquired more than a third of Aurizon's shares, the company would have to pay Hecla C$27.2 million as a break-up fee.   Continued...