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"Reject TRC offer" says Eldorado Gold

Eldorado tells shareholders TRC Capital Corp's C$17.50 per share offer is below market price.

Author: Gowri Jayakumar
Posted: Thursday , 23 Dec 2010

Bangalore (Reuters) - 

Eldorado Gold said it recommended its shareholders to reject TRC Capital Corp's unsolicited "mini-tender" offer to buy about 0.91 percent of the Vancouver-based miner's outstanding common shares at C$17.50 a piece. Eldorado said the offer to buy up to 5 million shares was at a discount of over 4.2 percent to the closing price on the Toronto Stock Exchange on Dec. 13, the day before the offer was commenced.

"Eldorado recommends that shareholders not tender their shares in response to this unsolicited, below-market offer," it said in a statement.

Shares of the company, which has projects in Brazil, China, Greece and Turkey, were down over 1 percent at C$18.33 in Wednesday afternoon trade on the Toronto Stock Exchange.

(Reporting by Gowri Jayakumar in Bangalore; Editing by Roshni Menon)