Zero-premium takeovers can be beneficial for acquiring companies, as they create a more diversified and financially stronger entity.

Eldorado Gold Corp. acquired Foran Mining Corp. in a $3.8-billion deal with no takeover premium. This type of zero-premium takeover tends to produce better long-term results as it creates a bigger, more diversified, and financially stronger entity. Former Barrick Gold Corp. CEO Mark Bristow championed zero-premium deals, but sticking to this approach missed out on attractive acquisitions. Eldorado's CEO, George Burns, took pride in the deal, but investors were less impressed, with Eldorado shares dropping 8.5% and Foran's shares dropping 5.2%.