March 11, 2019 / 2:43 PM / 15 days ago

Research firm criticizes Goldcorp chair payment over Newmont deal

FILE PHOTO: A visitor reads a pamphlet at the Goldcorp gold mining company booth during the Prospectors and Developers Association of Canada (PDAC) annual convention in Toronto, Ontario, Canada March 4, 2019. REUTERS/Chris Helgren

(Reuters) - Gold research firm Shareholders’ Gold Council (SGC) on Monday criticized Goldcorp Inc’s decision to approve an additional payment for chairman Ian Telfer with regard to its proposed merger with Newmont Mining Corp.

According to a Goldcorp circular cited by SGC, Telfer will be entitled for a lump sum retirement allowance of about $12 million. He was previously entitled for $4.5 million.

“While Goldcorp is telling its shareholders to sell their shares close to a 13-year low, Goldcorp management stands to reap over $33 million in potential change of control payments,” the statement said.

Goldcorp declined to comment. Newmont did not immediately respond to a request for comment.

SGC’s disclosed founding members include Adrian Day Asset Management and Paulson & Co Inc, which together held a less than 1 percent stake in Goldcorp, as of Dec. 31, according to data from Refinitiv.

Newmont said in January it would buy Goldcorp for $10 billion, a deal that was threatened by Barrick Gold Corp’s $18 billion hostile bid for Newmont.

Barrick on Monday withdrew its takeover proposal, which involved the U.S. gold miner ditching its takeover of Goldcorp, and instead signed an agreement with Newmont to create a joint venture for their operations in Nevada.

Reporting by Debroop Roy in Bengaluru; Editing by Saumyadeb Chakrabarty

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