New York Stock Exchange Champs

Glamis Gold Ltd. (GLG)

Last Trade: 46.12

Change: Up 7.26 (18.68%)

Canada's Goldcorp Inc. said on Thursday it will acquire U.S.-based Glamis Gold Ltd. for about $8.6 billion in stock, a deal that will catapult it firmly into the ranks of senior gold producers.

The friendly deal has already angered one major Goldcorp shareholder and comes just months after Goldcorp closed its purchase of some Placer Dome assets from Barrick Gold Corp. and after Glamis wrapped up its takeover of Western Silver.

It also comes at a time when the price of gold is at multiyear highs and demand is strong, which has triggered the latest round of consolidation.

"Both companies had some maturing mine issues, thus the pipeline of inventory is very important," said John Ing, president of Maison Placements.

"Gold companies' problem is growth, and so far the growth is through acquisitions rather than through the drill bit."

Glamis shareholders will receive 1.69 Goldcorp shares for each Glamis share, representing a premium of 32.7 percent to Glamis's Wednesday closing price.

Shares of Glamis rose 18 percent to $46.12 on the New York Stock Exchange and to C$50.70 on the Toronto Stock Exchange. Goldcorp stock dropped 9 percent to $27.66 in New York and C$30.55 in Toronto.