- Tahoe Resources (NYSE:TAHO) tumbled more than 9% in today's trade on lukewarm investor demand for nearly C$1B worth of the mining company's stock, Reuters reports, citing industry sources.
- Goldcorp (NYSE:GG) announced late Monday it would sell its 25.6% stake in TAHO for C$998M (US$811M) in a bought deal, but joint book runners GMP Securities and BMO Capital Markets reportedly had some difficulty placing the stock at the offering price of C$17.20/share.
- A TAHO spokesperson said "a near $1B deal doesn't materialize in a day," but that the company had heard the offering was going well and could take a few days for the placement to be completed.
- This would not be the first large mining industry bought deal to struggle in recent months, as investment banks had some trouble finding buyers for an $800M stock offering in March by Silver Wheaton.