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Newmont's extra 2 cents for Goldcorp stock adds up to tax savings for shareholders

Jan 17, 2019 - The Globe and Mail (Canada)
Mergers and Acquisitions

It is the mystery of the two cents.

When Newmont Mining Corp. said on Monday it will buy Goldcorp Inc. for about $10-billion, swapping its stock for Goldcorp's, it said it would add 2 US cents per share in cash to the transaction. The tiny little sweetener will cost Newmont just US$17-million.

Why even bother?

Robert Willens, a long-time U.S. securities analyst who specializes in matters of taxation, seems to have the answer. Newmont is creating a sizable but little-understood ...