UPDATE 2-Alamos Gold makes C$780 mln bid for Aurizon Mines

Mon Jan 14, 2013 5:05pm EST
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* Alamos bid offers 36 pct premium to Aurizon shareholders

* Aurizon says is reviewing offer

* Analysts skeptical a rival bid will emerge (Adds comments from CEO, analyst; share price move)

By Euan Rocha

TORONTO, Jan 14 (Reuters) - Alamos Gold Inc made an unsolicited offer on Monday to buy fellow Canadian miner Aurizon Mines Ltd for about C$780 million ($792.96 million) in cash and stock, aiming to win control of the Casa Berardi gold mine in Quebec.

If successful, the deal would leave Toronto-based Alamos with two producing gold mines located in jurisdictions considered politically stable and create a combined entity with an estimated market capitalization of about C$2.6 billion.

Alamos, which owns and operates the Mulatos mine in Mexico, has offered C$4.65 a share for Aurizon, a 36 percent premium on the stock's closing price of C$3.41 on Friday.

"While we view the offer as providing reasonable value, there appears to be room for a subsequent sweetened offer if needed," said National Bank analyst Paolo Lostritto in a note to clients.

Even so, Lostritto and others doubt that Aurizon can entice a suitable white knight that would trump Alamos's offer.   Continued...