Newmont unanimously rejected a hostile takeover bid from Canadian rival Barrick Gold, saying its own merger with Goldcorp was a better option.
Source: usa.inquirer.net
US-based gold and copper producer, Newmont Mining (NYSE: NEM) rejected the $17.8 billion unsolicited takeover bid from Canada-based Barrick Gold on Monday, saying its own recently-announced acquisition of Goldcorp would be a better option. Instead, Newmont submitted a joint venture proposal to Barrick that would realize synergies from both companies’ Nevada-related operations. The hostile bid announced on Feb. 25 would have created the largest gold miner worth an estimated $42 billion. However, Newmont rejected the offer as it is not in the best interests of shareholders on various counts including negative-premium, generating half vale of Goldcorp transaction; dilutive to Newmont’s NAV per share, and risky portfolio of Barrick.
