Eldorado Gold Corporation has withdrawn its takeover bid for Andean Resources. The Canadian gold mining company's president and chief executive Paul Wright made the announcement on Wednesday.
The company has decided not to proceed with the acquisition proposal for the Sydney based gold explorer.
The announcement was expected after Goldcorp Inc. topped the bid made by Eldorado Gold Corp. Goldcorp is the second largest Canadian gold producing company and had offered Andean Resources a Canadian $3.6 billion bid to acquire it.
The shareholders of Eldorado Gold Corporation were against entering a value destroying auction for a short term market speculation deal. The shares of the company rose 2.6% after the announcement was made and was being traded at Canadian $20.18 in the Toronto Stock Exchange.
The shares of Andean resources fell by 8.5% after the announcement was made. The Chief Executive Officer of Andean Resources, Wayne Hubert said that the company had not received any other proposals and would be willing to study any fresh bids. Although its largest shareholder Sentient Executive GP II is in favour of the deal being offered by Goldcorp Inc.