Eldorado (NYSE:EGO) Drops Andean (TSE:AND) Bid

Eldorado Gold Corp. (NYSE:EGO) announced it has officially dropped its bid for Andean Resources (TSE:AND), after Goldcorp (NYSE:GG) submitted a higher bid of $3.4 billion for the company.

Chief Executive Officer Paul Wright said, referring to losing value in a bidding war, “The gold industry, as a whole, has an appalling track record of value destruction and Eldorado has no intention of following in these unfortunate footsteps.”

Shareholders of Eldorado agreed with him according to Wright, who added they “expressed a note of caution in terms of Eldorado entering a value-destroying auction whose main result will be the enrichment of short-term market participants.”

The other side of the situation is it would have been a waste of time for Eldorado, who didn't have the resources at its disposal Goldcorp has.

The gold miner concluded in a statement that the Cerro Negro mining project, which is the reason behind the bidding for Andean, was a good asset, but not a must-have asset.