UPDATE 2-Andean Resources jumps 10 pct on bidding war talk

* Sydney shares rise a 10th; up over 40 percent in 2 days

* Rivals may top Goldcorp’s C$3.6 bln agreed offer –

* AngloGold Ashanti, Yamana Gold seen as potential bidders

* Andean reserves could rise 50-70 pct-analysts
(Adds closing share price in Sydney)

SYDNEY, Sept 6 (BestGrowthStock) – Shares in Andean Resources
(AND.AX: ) (AND.TO: ), the target of a C$3.6 billion ($3.5 billion)
takeover, jumped a tenth in Sydney trading on Monday as talk of
bigger gold resources at the Argentina-focused miner raised
hopes of higher bid.

Eldorado Gold Corp (ELD.TO: ), which saw its C$3.4 billion
all-share offer trumped by an agreed deal from Goldcorp (G.TO: )
on Friday, could attempt a higher bid, analysts said.

Yamana Gold (YRI.TO: ), and AngloGold Ashanti (ANGJ.J: ), which
also runs a mine in Argentina, were also tipped to be having a
close look at Andean.

“There is a good chance more Canadians will go for Andean.
The thought is its actual reserves are much higher than proven
reserves,” said Tom Elliot, managing director at hedge fund
MM&E Capital. MM&E takes stakes in M&A situations.

On Friday, Andean (AND.TO: ), which counts the Cerro Negro
Gold project in the southern province of Santa Cruz in
Argentina as its principal asset, agreed with Goldcorp to be
taken over.

Analysts said Andean has recently made several significant
discoveries that have the potential to lift its resource base
by 50 to 70 percent.

“Ultimately, in our view the project could host over 10
million ounces, then Goldcorp will have appeared to have
acquired Andean very cheaply,” UBS analyst Jo Battershill
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a DEALTALK on gold deals [ID:nSGE67T085] For a FACTBOX on gold M&As [ID:nSGE6820GI] For a graphic on gold demand http://r.reuters.com/faf67n For Goldcorp graphic: http://link.reuters.com/wab49n For Goldcorp profile: [ID:nN03134126] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>


The deal adds to a series of gold mining acquisitions this
year including Australia’s Newcrest Mining’s (NCM.AX: ) $8.4
billion purchase of rival Lihir Gold and Canada’s Kinross
(K.TO: ) $7.1 billion stock bid for Red Back Mining (RBI.TO: ).

Near-record prices for the metal (XAU=: ) are boosting the
hunt for reserves and pumping cash into the sector.

Andean shares closed 9.4 percent higher at A$7.0 after
having risen as much as 12.3 percent. With Monday’s move, the
shares have risen more than 40 percent in the last two

Under the deal agreed with Goldcorp, Andean shareholders
will get cash and shares offer worth C$6.50 a share, compared
with an all-share bid from Eldorado worth C$6.36 a share.

A transaction is expected to close in late 2010 or early
2011 and Andean’s project is expected to begin production in
late 2012.
($1=1.039 Canadian Dollar)
(Reporting by Narayanan Somasundaram & Sonali Paul; Editing by
Ed Davies and Lincoln Feast)

UPDATE 2-Andean Resources jumps 10 pct on bidding war talk