Jaguar Mining Inc. (JAG), the target of a proposed takeover by China’s Shandong Gold Group Co. in November, jumped the most in almost five months after Shandong’s shares were suspended from trading pending news.
Jaguar, the Concord, New Hampshire-based company that operates mines in Brazil, surged 15 percent to close at C$4.65 in Toronto. The increase was the biggest since Nov. 16, the day that Shandong’s interest was first reported.
Shandong’s shares were suspended pending an announcement about a bid for mining assets, the company said today in a statement to the Shanghai Stock Exchange.
Shandong made a $785 million, $9.30-a-share offer for Jaguar, two people familiar with the deal said Nov. 16. Jaguar said the same day it had received proposals in recent weeks and that it had begun a strategic review to explore its options. The company said Jan. 11 it had signed confidentiality agreements with “several parties”.
Valeria Rezende Diodato, a spokeswoman for Jaguar, didn’t respond to phone calls seeking comment.
Jaguar produces gold from three mines in Brazil and is developing a fourth operation in the country. The company had declined 38 percent this year through yesterday in Toronto.
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