Yet more gold sector M&A, as Eldorado (ELD.to) (EGO) buys European Goldfields (EGU.to)

A basically-all-paper deal that values EGU.to at tad over 10% higher than Friday's close. Here's the link, here's how it starts

VANCOUVER, BRITISH COLUMBIA, Dec 18, 2011 (MARKETWIRE via COMTEX) -- Eldorado Gold Corporation (the "Company" or "Eldorado")today announced that it has entered into a definitive agreement (the "Arrangement Agreement") with European Goldfields Limited ("European Goldfields")   pursuant to which Eldorado has agreed to acquire all of the issued and outstanding common shares of European Goldfields by way of a plan of arrangement (the "Arrangement") under the Yukon Business Corporations Act.

European Goldfields is a precious metals development company with attributable gold reserves of 9.2 million ounces and multi-stage assets located in Greece, Romania and Turkey. The company currently operates the Stratoni mine in Greece and is developing the Skouries and Olympias projects in Greece and the Certej project in Romania. European Goldfields is also partnered with Aktor SA, the largest construction company in Greece.

Under the Arrangement, shareholders of European Goldfields will receive 0.85 Eldorado shares and C$0.0001 in cash per European Goldfields share (the "Exchange Ratio"). Each outstanding option of European Goldfields shall be exchanged for options of Eldorado that will entitle the holder to receive, upon the exercise thereof, Eldorado shares based upon the Exchange Ratio and otherwise on the same terms and conditions as in the original European Goldfields option. The total transaction value is approximately C$2.5 billion.

Eldorado's offer represents continues here  

I betcha Centerra will have things to say about this one....a $75m break fee on a supposed $2.5Bn deal isn't setting the bar too high.