-->LONDON (MarketWatch) -- Goldcorp said Thursday it's agreed to offer $8.6 billion of its stock for Glamis Gold, continuing a trend of consolidation in the sector.
Goldcorp (GG: goldcorp inc new com
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4:15am 08/31/2006

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GG30.47, +0.27, +0.9%), a Vancouver-headquarter miner with operations in the Americas and Australia, is offering 1.69 of its shares for each share in Glamis (GLG: Glamis Gold Ltd.
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8:05am 08/31/2006

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GLG38.86, +0.26, +0.7%) (CA:GLG: news, chart, profile), another Canadian-based miner with operations in Nevada, Mexico and Central America.
The deal values Glamis, using Wednesday's closing price, at $51.49 a share, a 33% premium to its closing price.
Glamis shares were being priced between $48.25 and $48.30 a share on the Archipelago trading system on Thursday.
Goldcorp said the deal, in which it would get 60% of the combined company, would result in a miner with proven and probable reserves of 41.1 million gold ounces. Gold futures are currently trading at about $626 an ounce. Also see Metals Stocks.
The deal also follows Barrick Gold's (ABX: Barrick Gold Corporation
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4:15am 08/31/2006

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ABX32.79, -0.11, -0.3%) $10.4 billion acquisition of Placer Dome earlier this year. Barrick Gold has followed that deal up with an unsolicited $1.5 billion bid for NovaGold Resources (NG: novagold res inc com new
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8:30am 08/31/2006

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NG17.55, +0.05, +0.3%).
There are also two competing bids for nickel miner Inco (N: INCO Limited
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Last: 77.30+0.05+0.06%

4:15am 08/31/2006

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N77.30, +0.05, +0.1%).
"The combination of Goldcorp and Glamis will create a world-class, low-cost gold producer in the Americas with industry-leading growth from an exciting portfolio of development projects," said Goldcorp CEO Ian Telfer, who will become chairman of the combined firm.
Glamis CEO Kevin McArthur will be president and chief executive of the combined firm.
The deal needs the support of two-thirds of Glamis' shareholder base. A break-up fee of $215 million would be payable to Goldcorp under certain circumstances.